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Jupai Reports First Quarter 2018 Results

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Jupai Reports First Quarter 2018 Results

PR Newswire

SHANGHAI, May 28, 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 first quarter ended March 31, 2018.

FIRST QUARTER 2018 FINANCIAL HIGHLIGHTS

  • Net revenues in the first quarter of 2018 were RMB433.2 million (US[1]$69.1 million), a 17.5% increase from the corresponding period in 2017.

 

(RMB '000, except percentages)

Q1 2017


Q1 2017 %


Q1 2018


Q1 2018 %


YoY Change %

One-time commissions

234,759


63.70%


276,435


63.80%


17.80%

Recurring management fees

67,617


18.30%


122,908


28.40%


81.80%

Recurring service fees

26,225


7.10%


15,058


3.50%


-42.60%

Other service fees

40,139


10.90%


18,816


4.30%


-53.10%

Total net revenues

368,740


100.00%


433,217


100.00%


17.50%

 

  • Income from operations in the first quarter of 2018 was RMB152.5 million (US$24.3 million), a 21.8% increase from the corresponding period in 2017.
  • Net income attributable to ordinary shareholders in the first quarter of 2018 was RMB115.9 million (US$18.5 million), a 27.8% increase from the corresponding period in 2017.
  • Non-GAAP[2] net income attributable to ordinary shareholders in the first quarter of 2018 was RMB126.1 million (US$20.1 million), a 24.7% increase from the corresponding period in 2017.

FIRST QUARTER 2018 OPERATIONAL UPDATES 

  • Total number of active clients[3] during the first quarter of 2018 was 4,167.
  • The aggregate value of wealth management products distributed by the Company during the first quarter of 2018 was RMB10.9 billion (US$1.7 billion), a 23.2% decrease from the corresponding 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 March 30, 2018, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System, which was RMB6.2726 to US$1.00. The percentages stated in this press release are calculated based on the Renminbi amounts.

[2] Jupai's non-GAAP financial measures are derived from adjusting the corresponding GAAP financial measures by excluding the effects of share-based compensation and amortization of intangible assets resulted from business acquisitions.

[3] "Active clients" for a given period refers to clients who purchase wealth management products distributed by Jupai at least once during that given period.

 

Wealth management products distributed by the Company - breakdown by product type


Three months ended


March 31, 2017


March 31, 2018

Product type

(RMB in millions, except percentages)

Fixed income products

11,218

79%


3,933

36%

Private equity products

2,332

16%


6,043

56%

Secondary market equity fund products

20

1%


691

6%

Other products

628

4%


231

2%

All products

14,198

100%


10,898

100%

 

  • Jupai's coverage network as of March 31, 2018 included 73 client centers covering 48 cities, as compared to 72 client centers covering 44 cities as of March 31, 2017.
  • Total assets under management[4] as of March 31, 2018 were RMB54.5 billion (US$8.7 billion), a 5.3% decrease from December 31, 2017 and a 26.5% increase from March 31, 2017.

 

[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.

 

Assets under management – breakdown by product type


As of


March 31, 2017


March 31, 2018

Product type

(RMB in millions, except percentages)

Fixed income products

22,856

53%


27,385

51%

Private equity products

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