Jupai Investment On May 28th, the third-party wealthy institution, NYSE-listed company Jupai Investment (JP.N) released its unaudited financial results for the first quarter of 2020.
The financial report shows that in the first quarter of 2020, Jupai Investment achieved revenue of 96.6 million yuan, a 65.6% decline from the same period last year. Under non-GAAP, the adjusted common shareholders ’net loss was 17.2 million yuan, a decrease of 24.0% from the same period in 2019; the diluted net shareholders’ loss per ADS common share was 0.51 yuan, compared with 0.67 yuan in the same period in 2019 Renminbi.
Breaking down the data, Jupai Investment has narrowed its losses for three consecutive quarters under the pressure of net income in the first quarter.
According to the financial report data, Jupai ’s net losses attributable to ordinary shareholders in the second quarter of 2019 were 61.04 million yuan, the third quarter was a net loss of 47.9 million yuan, and the fourth quarter was a net loss of 30.15 million. In the first quarter of 2020, the net loss was 19.89 million yuan (unadjusted), a significant decrease of 34% from the previous month.
According to financial report analysis, Jupai ’s net losses continue to narrow, mainly due to the effective implementation of cost control measures.
Specifically, Jupai ’s operating costs continue to decrease. In the second quarter of 2019, Jupai ’s operating costs and expenses were 240 million yuan. In the third quarter, Jupai ’s operating costs and expenses were 220 million yuan, operating costs and expenses in the fourth quarter was 170 million yuan. In the first quarter of 2020, Jupai’s operating costs and expenses were 110 million yuan.
Judging from the scale of the fundraising and the number of customers, the financial report shows that Jupai Investment ’s first-quarter active users fell 56.3% from last year to 559, compared with 1279 last year . The total sales of wealth management products was 1.4 billion yuan, a decrease of 48.0% from the same period in 2019. In the first quarter, Jupai has accumulatively redeemed 96 products with a total redemption amount of 4.22 billion yuan. The reinvestment rate of core customers has increased compared with the same period of last year. In the first quarter, 64% of trading customers had more than two transactions, of which 12% were new customers, and 5% of customers had more than 10 million transactions. At the end of the first quarter, the management scale of Jupai ’s managersHowever, it is maintained at more than 39 billion yuan.
According to the website of Jupai Investment Group, Jupai Investment Group is one of the earliest and larger professional wealth management institutions established in China. The concept of “diligent wealth manager”, with the research system as the investment guide, has grown into a global service-oriented wealth management institution. The shareholders of Jupai Investment Group include E-House China, Sina, and Bank Julius Bär. Among them, Julius Baer is one of the largest independent private banking groups in the world. It was established in 1890 and was established in Switzerland in 1980. Listed on the exchange, it has become one of the 20 high-volume institutions in Switzerland.
At the earnings report call, Ni Jianda, chairman and CEO of Jupai Investment Group, said that the main reason for the decline in revenue of Jupai ’s investment in the first quarter was that the new coronary pneumonia epidemic affected Investors’ demand for wealth management services, in this macro environment, Jupai and the entire wealth management industry faced relatively large challenges in the first quarter. “With the continuous effectiveness of domestic epidemic prevention measures and the gradual adjustment of economic adjustments, we believe that in key areas, key industries and key cities, there will still be many development opportunities in the future. Confidence in the development of the wealth management industry. This is also reflected in our announcement of a $ 10 million share repurchase plan at the end of February this year. As of May 22, 292112 ADS has been repurchased. “
In addition, Ni Jianda also said that Jupai Investment will continue to implement the following four core strategies. First, continue to strengthen cost control and reduce operating costs and expenses, including optimizing sales incentive systems, streamlining personnel and sales networks, and continuing to improve operational efficiency. Second, enhance the differentiated competitive advantages of products, and further optimize product structure, including vigorously promoting the growth of real estate equity products, including residential real estate equity funds that are just in need. Third, improve the risk control ability and the transparency of project information. The “asset transparency information disclosure system” has been launched to provide investors with risk management and control at all stages of the product cycle. Fourth, continue to expand overseas business and seek business growth opportunities.