Jupai Holdings (JP) Reports Q1 Loss of $0.10 on Revenues of $41.9M

Jupai Holdings (NYSE: JP) reported Q1 EPS of ($0.10). Revenue for the quarter came in at $41.9 million, versus $0 reported last year.

"Jupai's first quarter 2019 operating results remained under pressure,\" said Mr. Jianda Ni, Jupai's chairman of the board and chief executive officer. "In addition to fewer working days resulting from the Chinese New Year holiday, weaker than expected investor confidence amid the unsettled US-China trade conflict contributed to the headwinds we faced in the quarter. As a result, our total net revenue for the first quarter of 2019 declined by 35.1% year-over-year to RMB281.0 million. Our total assets under management as of March 31, 2019 was RMB53.0 billion, a 2.8% decrease from one year ago."

"Given the macro-economic uncertainties, we believe investor confidence will return gradually beginning in late 2019. Amid the prolonged market downturn, Jupai will remain dedicated to executing on our three strategies to optimize our business. Firstly, we will look to grow our real estate equity products more proactively. We believe that real estate is an asset class with relatively lower investment risk compared to other categories such as consumer credit or supply chain management products. The rising funding costs and current volatility in the real estate industry should continue to provide an excellent entry point for investors to gain exposure to equity securities from leading real estate companies. Given Jupai's abundant real estate industry experience, we are well positioned to identify the highest quality real estate projects for our investors. Secondly, we will continue enhancing our risk control system. We believe risk management capability is one of the most critical aspects of wealth management products and the key to enhancing investor confidence. Over the past several years, we have improved our risk control systems across our entire product life cycle, and in the months ahead we will further strengthen our quality standards for project counterparties. Thirdly, we target to achieve incremental growth from our overseas business, including development of overseas insurance products and collaboration with leading international financial institutions to meet the rising demand for global asset allocation from our customers. With these strategies in place, we are confident that Jupai will be well-positioned to seize opportunities as the market recovers."

Ms. Min Liu, Jupai's chief financial officer, said, "In light of the challenging environment, Jupai has implemented various cost control measures, including downsizing our workforce, adjusting our incentive systems, optimizing our coverage network and streamlining our business SOP to improve our operating efficiency and profitability. As we foresee an increase in operating expenses over the near-term related to personnel optimization, we expect to realize more positive effects from our cost control measures towards the end of this year."

For earnings history and earnings-related data on Jupai Holdings (JP) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• SanDisk upgraded at JPMorgan after investor day; shares climb
• Evogene chairman to address dissident shareholders on results call