SHANGHAI, Nov. 22, 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 third quarter and nine months
ended September 30, 2019.
THIRD QUARTER AND FIRST NINE MONTHS 2019 FINANCIAL
HIGHLIGHTS
- Net revenues in the third quarter of 2019 were
RMB182.1 million (US$[1]25.5 million), a decrease of 41.4%
from the corresponding period in 2018. For the first nine months of
2019, net revenues were RMB649.0
million (US$90.8 million), a
decrease of 45.3% from the same period in 2018.
(RMB '000, except
percentages)
|
Q3
2018
|
|
Q3 2018
%
|
|
Q3
2019
|
|
Q3 2019
%
|
|
YoY Change
%
|
One-time
commissions
|
147,718
|
|
47.6%
|
|
102,656
|
|
56.4%
|
|
-30.5%
|
Recurring management
fees
|
96,379
|
|
31.0%
|
|
50,098
|
|
27.5%
|
|
-48.0%
|
Recurring service
fees
|
10,144
|
|
3.3%
|
|
29,338
|
|
16.1%
|
|
189.2%
|
Other service
fees
|
56,343
|
|
18.1%
|
|
-
|
|
-
|
|
-100.0%
|
Total net
revenues
|
310,584
|
|
100.0%
|
|
182,092
|
|
100.0%
|
|
-41.4%
|
(RMB '000, except
percentages)
|
9M
2018
|
|
9M 2018
%
|
|
9M
2019
|
|
9M 2019
%
|
|
YoY Change
%
|
One-time
commissions
|
706,396
|
|
59.5%
|
|
247,796
|
|
38.2%
|
|
-64.9%
|
Recurring management
fees
|
340,983
|
|
28.7%
|
|
310,076
|
|
47.8%
|
|
-9.1%
|
Recurring service
fees
|
36,633
|
|
3.1%
|
|
77,231
|
|
11.9%
|
|
110.8%
|
Other service
fees
|
103,355
|
|
8.7%
|
|
13,904
|
|
2.1%
|
|
-86.5%
|
Total net
revenues
|
1,187,367
|
|
100.0%
|
|
649,007
|
|
100.0%
|
|
-45.3%
|
- Loss from operations in the third quarter of 2019 was
RMB40.2 million (US$5.6 million), as compared to income from
operations of RMB27.3 million for the
corresponding period in 2018. For the first nine months of 2019,
loss from operations was RMB107.2
million (US$15.0 million), as
compared to income from operations of RMB340.1 million for the same period in
2018.
- Net loss attributable to ordinary shareholders in the
third quarter of 2019 was RMB47.9
million (US$6.7 million), as
compared to net income attributable to ordinary shareholders of
RMB1.7 million for the corresponding
period in 2018. For the first nine months of 2019, net loss
attributable to ordinary shareholders was RMB134.5 million (US$18.8
million), as compared to net income attributable to ordinary
shareholders of RMB205.4 million for
the same period in 2018.
- Non-GAAP[2]
net loss attributable to ordinary shareholders in the third quarter
of 2019 was RMB45.5 million
(US$6.4 million), as compared to
non-GAAP net income attributable to ordinary shareholders of
RMB25.5 million for the corresponding
period in 2018. For the first nine months of 2019, non-GAAP net
loss attributable to ordinary shareholders was RMB126.8 million (US$17.7
million), as compared to non-GAAP net income attributable to
ordinary shareholders of RMB267.1
million for the same period in 2018.
THIRD QUARTER AND FIRST NINE MONTHS 2019
OPERATIONAL UPDATES
- Total number of active clients[3] during the third quarter of 2019
was 1,058.
- The aggregate value of wealth management products
distributed by the Company during the third quarter
of 2019 was RMB2.7 billion
(US$0.4 billion), a 49.5% decrease
from the corresponding period in 2018. For the first nine months of
2019, the aggregate value of wealth management products distributed
by the Company was RMB7.9 billion
(US$1.1 billion), a 69.4% decrease
from the corresponding period in 2018.
Wealth management
products distributed by the Company - breakdown by product
type
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September 30,
2018
|
September 30,
2019
|
|
September 30,
2018
|
September 30,
2019
|
Product
type
|
(RMB in millions,
except percentages)
|
|
(RMB in millions,
except percentages)
|
Fixed income
products
|
865
|
16%
|
2,013
|
76%
|
|
6,083
|
24%
|
5,746
|
72%
|
Private equity
products
|
3,689
|
70%
|
451
|
17%
|
|
17,680
|
68%
|
1,412
|
18%
|
Secondary market
equity fund products
|
144
|
3%
|
37
|
1%
|
|
1,104
|
4%
|
159
|
2%
|
Other
products
|
561
|
11%
|
152
|
6%
|
|
1,018
|
4%
|
612
|
8%
|
All
products
|
5,259
|
100%
|
2,653
|
100%
|
|
25,885
|
100%
|
7,929
|
100%
|
- Jupai's coverage network as of September 30, 2019 included 54 client centers
covering 44 cities, as compared to 77 client centers covering 49
cities as of September 30, 2018.
- Total assets under management[4] as of September 30, 2019 were RMB45.1 billion (US$6.3
billion), a 21.9% decrease from September 30, 2018.
Assets under
management – breakdown by product type
|
|
As
of
|
|
September 30,
2018
|
|
September 30,
2019
|
Product
type
|
(RMB in millions,
except percentages)
|
Fixed income
products
|
19,760
|
34%
|
|
16,031
|
35%
|
Private equity
products
|
34,826
|
60%
|
|
26,913
|
60%
|
Secondary market
equity fund products
|
2,077
|
4%
|
|
942
|
2%
|
Other
products
|
1,095
|
2%
|
|
1,218
|
3%
|
All
products
|
57,758
|
100%
|
|
45,104
|
100%
|
"We saw improved operating performance in the third quarter of
2019 even as the market environment remained challenging," said Mr.
Jianda Ni, Jupai's chairman of the
board and chief executive officer. "Concerns over a slowdown in
overall economic growth and international trade conflicts continue
to impact investor confidence. However, the aggregate value of
wealth management products distributed by Jupai during the third
quarter of 2019 increased quarter-over-quarter by 6% from
RMB2.5 billion to RMB2.7 billion, as our wealth management products
backed by high-quality real estate projects gained traction in the
market. In addition, our bottom line results for the quarter were
enhanced by our ongoing cost control efforts."
"We remain cautiously optimistic about Jupai's outlook for the
coming quarters as we have seen a gradual loosening of restrictions
on privately-offered funds over the past several months. Looking
ahead, we remain dedicated to executing on our three strategies to
expand Jupai's market share. Firstly, leveraging our superior
industry expertise, we will continue to develop high-quality real
estate equity products with attractive risk-return profiles.
Secondly, we will further enhance our risk control systems in order
to increase investor confidence. Thirdly, we will seek potential
growth opportunities in our overseas business."
Ms. Min Liu, Jupai's chief
financial officer, said, "Jupai succeeded in reducing our operating
expenses on a sequential basis in the third quarter of 2019. In
particular, we lowered our cost of revenue and G&A expenses
through streamlining operations and enhancing operating
efficiency."
THIRD QUARTER AND FIRST NINE MONTHS 2019
FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2019 were
RMB182.1 million (US$25.5 million), a 41.4% decrease from the
corresponding period in 2018, primarily due to decreases in both
one-time commissions and recurring management fees. Net revenues
were RMB649.0 million (US$90.8 million) for the first nine months of
2019, a decrease of 45.3% from the same period in 2018.
- Net revenues from one-time commissions for the third
quarter of 2019 were RMB102.7 million
(US$14.4 million), a 30.5% 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 nine months of 2019, net
revenues from one-time commissions were RMB247.8 million (US$34.7
million), a decrease of 64.9% from the same period in
2018.
- Net revenues from recurring management fees for the
third quarter of 2019 were RMB50.1
million (US$7.0 million), a
48.0% decrease from the corresponding period in 2018, primarily due
to the decrease in the value of assets under management.
RMB17.4 million (US$2.4 million) and RMB5.7
million carried interest were recognized as part of Jupai's
recurring management fees in the third quarter of 2019 and 2018,
respectively. For the first nine months of 2019, net revenues from
recurring management fees were RMB310.1
million (US$43.4 million), a
9.1% decrease from the same period in 2018. RMB156.0 million (US$21.8
million) and RMB49.7 million
carried interest was recognized as part of Jupai's recurring
management fees for the first nine months of 2019 and the same
period in 2018, respectively.
- Net revenues from recurring service fees for the third
quarter of 2019 were RMB29.3 million
(US$4.1 million), a 189.2% increase
from the corresponding period in 2018, primarily because the
Company provided ongoing services to more product suppliers. The
Company recognized RMB1.8 million
(US$0.3 million) and nil variable
performance fees in the third quarter of 2019 and 2018,
respectively. For the first nine months of 2019, net revenues from
recurring service fees were RMB77.2
million (US$10.8 million), a
110.8% increase from the same period in 2018. The Company
recognized RMB1.8 million
(US$0.3 million) and RMB0.3 million variable performance fees for the
first nine months of 2019 and the same period in 2018,
respectively.
- Net revenues from other service fees for the third
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 nine months of 2019, net revenues
from other service fees were RMB13.9
million (US$1.9 million), a
decrease of 86.5% from the same period in 2018.
Operating Costs and Expenses
Operating costs and expenses for the third quarter
of 2019 were RMB222.3 million
(US$31.1 million), a 21.5% decrease
from the corresponding period in 2018. For the first nine months of
2019, operating costs and expenses were RMB756.2 million (US$105.8
million), a decrease of 10.8% from the same period in
2018.
- Cost of revenues for the third quarter of 2019 was
RMB105.9 million (US$14.8 million), a 32.0% 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 nine months of 2019,
cost of revenues was RMB390.3 million
(US$54.6 million), a decrease of
15.2% from the same period in 2018.
- Selling expenses for the third quarter of 2019 were
RMB52.9 million (US$7.4 million), a 19.7% 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 nine months of 2019, selling expenses were RMB156.3 million (US$21.9
million), a decrease of 29.9% from the same period in
2018.
- General and administrative expenses for the third
quarter of 2019 were RMB68.0 million
(US$9.5 million), an 8.9% increase
from the corresponding period in 2018. For the first nine months of
2019, general and administrative expenses were RMB219.7 million (US$30.7
million), an increase of 22.1% from the same period in 2018,
mainly due to additional provision for doubtful accounts and the
increase in service fees, net off by the decrease in payroll
expenses.
- Other operating income (government subsidies) received
by the Company in the third quarter of 2019 was RMB4.6 million (US$0.6
million), a 441.4% increase from the corresponding period in
2018. For the first nine months of 2019, other operating income was
RMB10.2 million (US$1.4 million), a decrease of 35.9% 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 third quarter of 2019 was
-22.1%, compared to 8.8% for the corresponding period in 2018. For
the first nine months of 2019, operating margin was -16.5%,
compared to 28.6% for the same period in 2018.
Income tax expenses for the third quarter of 2019 were
RMB10.3 million (US$1.4 million), a 28.3% increase from the
corresponding period in 2018, due to recording of valuation
allowance of RMB 4.6 million. For the
first nine months of 2019, income tax expenses were RMB33.1 million (US$4.6
million), a decrease of 65.7% from the same period in 2018,
primarily due to a decrease in taxable income.
Net Income
- Net loss attributable to
ordinary shareholders for the third quarter of 2019 was
RMB47.9 million (US$6.7 million), as compared to net income
attributable to ordinary shareholders of RMB1.7 million for the corresponding period in
2018. For the first nine months of 2019, net loss attributable to
ordinary shareholders was RMB134.5
million (US$18.8 million), as
compared to net income attributable to ordinary shareholders of
RMB205.4 million for the same period
in 2018.
- Net margin attributable to ordinary shareholders for
the third quarter of 2019 was -26.3%, compared to 0.5% for the
corresponding period in 2018. For the first nine months of 2019,
net margin attributable to ordinary shareholders was -20.7%,
compared to 17.3% for the same period in 2018.
- Net loss attributable to ordinary shareholders per basic and
diluted American depositary share ("ADS") for the third quarter
of 2019 were RMB1.42 (US$0.20) and RMB1.42 (US$0.20),
respectively, as compared to net income attributable to ordinary
shareholders per basic and diluted ADS of RMB0.05 and RMB0.05, respectively, for the corresponding
period in 2018. For the first nine months of 2019, net loss
attributable to ordinary shareholders per basic and diluted ADS was
RMB4.00 (US$0.56) and RMB4.00 (US$0.56),
respectively, as compared to net income attributable to ordinary
shareholders per basic and diluted ADS of RMB6.16 and RMB5.85, respectively, for the same period in
2018.
- Non-GAAP net loss
attributable to ordinary shareholders for the third quarter of
2019 was RMB45.5 million
(US$6.4 million), compared to
non-GAAP net income attributable to ordinary shareholders of
RMB25.5 million for the corresponding
period in 2018. For the first nine months of 2019, non-GAAP net
loss attributable to ordinary shareholders was RMB126.8 million (US$17.7
million), as compared to non-GAAP net income attributable to
ordinary shareholders of RMB267.1
million for the same period in 2018.
- Non-GAAP net margin attributable to ordinary
shareholders for the third quarter of 2019 was -25.0%, as
compared to 8.2% for the corresponding period in 2018. For the
first nine months of 2019, non-GAAP net margin attributable to
ordinary shareholders was -19.5%, as compared to 22.5% for the same
period in 2018.
- Non-GAAP net loss attributable to ordinary shareholders
per diluted ADS for the third quarter of 2019 was RMB1.35 (US$0.19),
as compared to non-GAAP net income attributable to ordinary
shareholders per diluted ADS of RMB0.73 for the corresponding period in 2018. For
the first nine months of 2019, non-GAAP net loss attributable to
ordinary shareholders per diluted ADS was RMB3.77 (US$0.53),
as compared to non-GAAP net income attributable to ordinary
shareholders per diluted ADS of RMB7.60 for the same period in 2018.
Balance Sheet and Cash Flow
As of September 30, 2019, the
Company had RMB859.7 million
(US$120.3 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
third quarter of 2019 was RMB53.1
million (US$7.4 million). For
the first nine months of 2019, net cash used in operating
activities was RMB177.6 million
(US$24.9 million).
Net cash used in investing activities during the
third quarter of 2019 was RMB206.5
million (US$28.9 million). For
the first nine months of 2019, net cash used in investing
activities was RMB265.3 million
(US$37.1 million).
Net cash provided by financing activities during the
third quarter of 2019 was nil. For the first nine months of 2019,
net cash provided by financing activities was RMB29.6 thousand (US$4.1
thousand).
CONFERENCE CALL
Jupai's management will host an earnings conference call on
November 22, 2019 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:
|
5784687
|
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 November 30,
2019:
U.S./International:
|
+1-855-452-5696
|
Hong Kong:
|
800-963-117
|
Mainland
China:
|
400-632-2162
|
Singapore:
|
800-616-2305
|
Passcode:
|
5784687
|
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, 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, share options and amortization of intangible
assets related to acquisition and impairment loss of investment in
affiliates. 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.
[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 30, 2019, as set forth
in the H.10 statistical release of the Board of Governors of the
Federal Reserve System, which was RMB 7.1477 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.
|
[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,
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,298,565,042
|
|
859,673,288
|
|
120,272,715
|
Restricted
cash
|
4,000,000
|
|
-
|
|
-
|
Short-term
investments
|
4,723,612
|
|
-
|
|
-
|
Accounts
receivable
|
39,633,035
|
|
9,019,150
|
|
1,261,826
|
Other
receivables
|
20,493,145
|
|
18,164,788
|
|
2,541,347
|
Amounts due from
related parties
|
199,331,694
|
|
114,703,002
|
|
16,047,540
|
Other current
assets
|
15,320,791
|
|
7,224,823
|
|
1,010,790
|
Total current
assets
|
1,582,067,319
|
|
1,008,785,051
|
|
141,134,218
|
Long-term
investments
|
58,950,000
|
|
93,197,850
|
|
13,038,859
|
Investment in
affiliates
|
67,262,431
|
|
312,556,421
|
|
43,728,251
|
Amounts due from
related parties — non-current
|
48,626,353
|
|
29,153,361
|
|
4,078,705
|
Property and
equipment, net
|
36,267,042
|
|
33,565,492
|
|
4,695,985
|
Intangible assets,
net
|
58,124,608
|
|
39,314,496
|
|
5,500,300
|
Goodwill
|
297,031
|
|
-
|
|
-
|
Other non-current
assets
|
27,914,021
|
|
31,240,588
|
|
4,370,719
|
Right-of-use
assets
|
-
|
|
126,195,918
|
|
17,655,458
|
Deferred tax
assets
|
100,985,228
|
|
15,305,761
|
|
2,141,355
|
Total
Assets
|
1,980,494,033
|
|
1,689,314,938
|
|
236,343,850
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
116,653,658
|
|
63,797,840
|
|
8,925,646
|
Income tax
payable
|
227,537,993
|
|
73,559,285
|
|
10,291,323
|
Other tax
payable
|
43,009,523
|
|
13,972,776
|
|
1,954,863
|
Amounts due to
related parties — current
|
31,105,111
|
|
18,142,932
|
|
2,538,289
|
Deferred revenue from
related parties
|
111,720,785
|
|
59,336,147
|
|
8,301,432
|
Deferred
revenue
|
18,949,097
|
|
29,086,257
|
|
4,069,317
|
Other current
liabilities
|
39,929,945
|
|
119,377,372
|
|
16,701,509
|
Total current
liabilities
|
588,906,112
|
|
377,272,609
|
|
52,782,379
|
Deferred revenue —
non-current from related parties
|
22,096,306
|
|
10,148,929
|
|
1,419,887
|
Deferred revenue —
non-current
|
2,144,593
|
|
368,042
|
|
51,491
|
Operating Lease
Liabilities — non-current
|
-
|
|
63,664,226
|
|
8,906,953
|
Deferred tax
liabilities
|
198,187
|
|
-
|
|
-
|
Total
Liabilities
|
613,345,198
|
|
451,453,806
|
|
63,160,710
|
Equity
|
1,367,148,835
|
|
1,237,861,132
|
|
173,183,140
|
Total Liabilities
and Total Shareholders' Equity
|
1,980,494,033
|
|
1,689,314,938
|
|
236,343,850
|
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Income Statements
|
(In RMB, except
for USD data and ADS data)
|
|
|
Three months
ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
|
|
|
|
|
Third party
revenues
|
116,290,554
|
|
108,552,036
|
|
15,186,989
|
Related party
revenues
|
195,022,533
|
|
73,997,411
|
|
10,352,618
|
Total
revenues
|
311,313,087
|
|
182,549,447
|
|
25,539,607
|
Taxes and
surcharges
|
(728,702)
|
|
(457,767)
|
|
(64,044)
|
Net
revenues
|
310,584,385
|
|
182,091,680
|
|
25,475,563
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Cost of
revenues
|
(155,832,886)
|
|
(105,905,745)
|
|
(14,816,759)
|
Selling
expenses
|
(65,838,130)
|
|
(52,872,376)
|
|
(7,397,117)
|
General and
administrative expenses
|
(62,460,602)
|
|
(68,047,595)
|
|
(9,520,209)
|
Other operating
income — government subsidies
|
841,893
|
|
4,557,939
|
|
637,679
|
Total operating cost
and expenses
|
(283,289,725)
|
|
(222,267,777)
|
|
(31,096,406)
|
Income (loss) from
operations
|
27,294,660
|
|
(40,176,097)
|
|
(5,620,843)
|
|
|
|
|
|
|
Gain from
deconsolidation of subsidiaries
|
561,528
|
|
-
|
|
-
|
Interest
income
|
1,053,088
|
|
1,582,036
|
|
221,335
|
Investment
loss
|
(945,974)
|
|
(4,670,453)
|
|
(653,420)
|
Other
income
|
3,140,310
|
|
490,756
|
|
68,659
|
Total other
income
|
3,808,952
|
|
(2,597,661)
|
|
(363,426)
|
Income (loss) before
taxes and loss from equity in affiliates
|
31,103,612
|
|
(42,773,758)
|
|
(5,984,269)
|
Income tax
expense
|
(8,019,385)
|
|
(10,288,783)
|
|
(1,439,454)
|
(Loss) gain from
equity in affiliates
|
(18,710,397)
|
|
193,922
|
|
27,131
|
Net income
(loss)
|
4,373,830
|
|
(52,868,619)
|
|
(7,396,592)
|
Net (income) loss
attributable to non-controlling interests
|
(2,675,124)
|
|
4,972,227
|
|
695,640
|
Net income (loss)
attributable to ordinary shareholders
|
1,698,706
|
|
(47,896,392)
|
|
(6,700,952)
|
|
|
|
|
|
|
Net income (loss) per
ADS:
|
|
|
|
|
|
Basic
|
0.05
|
|
(1.42)
|
|
(0.20)
|
Diluted
|
0.05
|
|
(1.42)
|
|
(0.20)
|
Weighted average
number of ADSs used in computation:
|
|
|
|
|
|
Basic
|
33,547,937
|
|
33,622,879
|
|
33,622,879
|
Diluted
|
34,871,348
|
|
33,622,879
|
|
33,622,879
|
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Income Statements
|
(In RMB, except
for USD data and ADS data)
|
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
|
|
|
|
|
Third party
revenues
|
246,427,869
|
|
288,638,288
|
|
40,381,981
|
Related party
revenues
|
944,616,780
|
|
363,828,190
|
|
50,901,435
|
Total
revenues
|
1,191,044,649
|
|
652,466,478
|
|
91,283,416
|
Taxes and
surcharges
|
(3,677,954)
|
|
(3,459,041)
|
|
(483,938)
|
Net
revenues
|
1,187,366,695
|
|
649,007,437
|
|
90,799,478
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Cost of
revenues
|
(460,195,649)
|
|
(390,307,152)
|
|
(54,605,978)
|
Selling
expenses
|
(222,963,325)
|
|
(156,322,747)
|
|
(21,870,356)
|
General and
administrative expenses
|
(180,023,991)
|
|
(219,733,972)
|
|
(30,741,913)
|
Other operating
income — government subsidies
|
15,882,366
|
|
10,179,802
|
|
1,424,207
|
Total operating cost
and expenses
|
(847,300,599)
|
|
(756,184,069)
|
|
(105,794,040)
|
Income (loss) from
operations
|
340,066,096
|
|
(107,176,632)
|
|
(14,994,562)
|
|
|
|
|
|
|
Gain from
deconsolidation of subsidiaries
|
561,528
|
|
-
|
|
-
|
Interest
income
|
3,128,582
|
|
4,934,136
|
|
690,311
|
Investment income
(loss)
|
816,417
|
|
(2,388,143)
|
|
(334,113)
|
Other
income
|
4,527,870
|
|
2,828,849
|
|
395,770
|
Total other
income
|
9,034,397
|
|
5,374,842
|
|
751,968
|
Income (loss) before
taxes and loss from equity in affiliates
|
349,100,493
|
|
(101,801,790)
|
|
(14,242,594)
|
Income tax
expense
|
(96,393,052)
|
|
(33,099,743)
|
|
(4,630,825)
|
Loss from equity in
affiliates
|
(39,948,843)
|
|
(4,928,441)
|
|
(689,514)
|
Net income
(loss)
|
212,758,598
|
|
(139,829,974)
|
|
(19,562,933)
|
Net (income) loss
attributable to non-controlling interests
|
(7,340,318)
|
|
5,296,403
|
|
740,994
|
Net income (loss)
attributable to ordinary shareholders
|
205,418,280
|
|
(134,533,571)
|
|
(18,821,939)
|
|
|
|
|
|
|
Net income (loss) per
ADS:
|
|
|
|
|
|
Basic
|
6.16
|
|
(4.00)
|
|
(0.56)
|
Diluted
|
5.85
|
|
(4.00)
|
|
(0.56)
|
Weighted average
number of ADSs used in computation:
|
|
|
|
|
|
Basic
|
33,359,233
|
|
33,613,659
|
|
33,613,659
|
Diluted
|
35,123,696
|
|
33,613,659
|
|
33,613,659
|
Jupai Holdings
Limited
|
Unaudited
Condensed Comprehensive Income Statements
|
(In RMB, except
for USD data)
|
|
|
Three months
ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net income
(loss)
|
4,373,830
|
|
(52,868,619)
|
|
(7,396,592)
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustment
|
18,590,176
|
|
8,038,238
|
|
1,124,591
|
Other comprehensive
income
|
18,590,176
|
|
8,038,238
|
|
1,124,591
|
Comprehensive income
(loss)
|
22,964,006
|
|
(44,830,381)
|
|
(6,272,001)
|
Less: Comprehensive
income attributable to non-controlling interests
|
2,675,124
|
|
(4,945,351)
|
|
(691,880)
|
Comprehensive
income (loss) attributable to ordinary shareholders
|
20,288,882
|
|
(39,885,030)
|
|
(5,580,121)
|
Jupai Holdings
Limited
|
Unaudited
Condensed Comprehensive Income Statements
|
(In RMB, except
for USD data)
|
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net income
(loss)
|
212,758,598
|
|
(139,829,974)
|
|
(19,562,933)
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustment
|
20,891,340
|
|
8,312,901
|
|
1,163,018
|
Other comprehensive
income
|
20,891,340
|
|
8,312,901
|
|
1,163,018
|
Comprehensive income
(loss)
|
233,649,938
|
|
(131,517,073)
|
|
(18,399,915)
|
Less: Comprehensive
income attributable to non-controlling interests
|
7,340,318
|
|
(5,266,919)
|
|
(736,869)
|
Comprehensive
income (loss) attributable to ordinary shareholders
|
226,309,620
|
|
(126,250,154)
|
|
(17,663,046)
|
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,
|
|
2018
|
|
2019
|
|
RMB
|
|
RMB
|
Net margin
attributable to ordinary shareholders
|
0.5%
|
|
-26.3%
|
Adjusted net margin
attributable to ordinary shareholders (non-GAAP)
|
8.2%
|
|
-25.0%
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
|
1,698,706
|
|
(47,896,392)
|
Adjustment for
share-based compensation (net of tax effect of nil for both three
months
ended September 30, 2018 and 2019)
|
4,338,128
|
|
2,409,227
|
Adjustment for
amortization of intangible assets related to acquisition (net of
tax effect of
RMB1,207,506 and nil for three months ended September 30, 2018 and
2019, respectively)
|
3,622,519
|
|
-
|
Adjustment for
impairment loss of investment in affiliates (net of tax effect of
nil for both
three months ended September 30, 2018 and 2019)
|
15,808,792
|
|
-
|
Adjusted net
income (loss) attributable to ordinary shareholders
(non-GAAP)
|
25,468,145
|
|
(45,487,165)
|
|
|
|
|
Net income
(loss) attributable to ordinary shareholders per ADS,
diluted
|
0.05
|
|
(1.42)
|
Adjusted net income
(loss) attributable to ordinary shareholders per ADS, diluted
(non-GAAP)
|
0.73
|
|
(1.35)
|
|
|
|
|
Weighted average
number of ADSs used in computation:
|
|
|
|
Diluted
|
34,871,348
|
|
33,622,879
|
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,
|
|
2018
|
|
2019
|
|
RMB
|
|
RMB
|
Net margin
attributable to ordinary shareholders
|
17.3%
|
|
-20.7%
|
Adjusted net margin
attributable to ordinary shareholders (non-GAAP)
|
22.5%
|
|
-19.5%
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
|
205,418,280
|
|
(134,533,571)
|
Adjustment for
share-based compensation (net of tax effect of nil for both nine
months ended
September 30, 2018 and 2019)
|
17,424,226
|
|
7,194,491
|
Adjustment for
amortization of intangible assets related to acquisition (net of
tax effect of
RMB3,486,023 and RMB196,316 for nine months ended September 30,
2018 and 2019,
respectively)
|
10,458,072
|
|
588,954
|
Adjustment for
impairment loss of investment in affiliates (net of tax effect of
nil for both
nine months ended September 30, 2018 and 2019)
|
33,808,792
|
|
-
|
Adjusted net
income (loss) attributable to ordinary shareholders
(non-GAAP)
|
267,109,370
|
|
(126,750,126)
|
|
|
|
|
Net income
(loss) attributable to ordinary shareholders per ADS,
diluted
|
5.85
|
|
(4.00)
|
Adjusted net income
(loss) attributable to ordinary shareholders per ADS, diluted
(non-GAAP)
|
7.60
|
|
(3.77)
|
|
|
|
|
Weighted average
number of ADSs used in computation:
|
|
|
|
Diluted
|
35,123,696
|
|
33,613,659
|
View original
content:http://www.prnewswire.com/news-releases/jupai-reports-third-quarter-2019-results-300963666.html
SOURCE Jupai Holdings Limited