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Form 6-K Jupai Holdings Ltd For: Nov 30

November 24, 2020 6:04 AM EST

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November 2020

 


 

Commission File Number: 001-37485

 


 

Jupai Holdings Limited

 

Global Creative Center, T2, 15/F

No 166 Ming Hong Road

Minhang District

Shanghai 201100

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

 

Form 20-F

x

Form 40-F

o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Jupai Holdings Limited

 

 

 

 

 

By

:

/s/ Jianda Ni

 

Name:

:

Jianda Ni

 

Title:

:

Chairman of the Board of Directors and Chief Executive Officer

 

 

 

 

Date: November 24, 2020

 

 

 

 

2


 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

3


Exhibit 99.1

 

Jupai Reports Third Quarter 2020 Results

 

SHANGHAI — November 23, 2020 — 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 the nine months ended September 30, 2020.

 

THIRD QUARTER AND FIRST NINE MONTHS 2020 FINANCIAL HIGHLIGHTS

 

·                      Net revenues in the third quarter of 2020 were RMB85.1 million, a decrease of 53.2% from the corresponding period in 2019. For the first nine months of 2020, net revenues were RMB290.2 million, a decrease of 55.3% from the same period in 2019.

 

For the quarter ended September 30

 

(RMB ‘000, except percentages)

 

Q3 2019

 

Q3 2019 %

 

Q3 2020

 

Q3 2020 %

 

YoY Change %

 

One-time commissions

 

102,656

 

56.4

%

36,295

 

42.6

%

-64.6

%

Recurring management fees

 

50,098

 

27.5

%

22,400

 

26.3

%

-55.3

%

Recurring service fees

 

29,338

 

16.1

%

26,445

 

31.1

%

-9.9

%

Other service fees

 

 

 

 

 

 

Total net revenues

 

182,092

 

100.0

%

85,140

 

100.0

%

-53.2

%

 

For the nine months ended September 30

 

(RMB ‘000, except percentages)

 

9M 2019

 

9M 2019 %

 

9M 2020

 

9M 2020 %

 

YoY Change %

 

One-time commissions

 

247,796

 

38.2

%

123,576

 

42.6

%

-50.1

%

Recurring management fees

 

310,076

 

47.8

%

80,390

 

27.7

%

-74.1

%

Recurring service fees

 

77,231

 

11.9

%

86,199

 

29.7

%

11.6

%

Other service fees

 

13,904

 

2.1

%

 

 

 

Total net revenues

 

649,007

 

100.0

%

290,165

 

100.0

%

-55.3

%

 

·                      Loss from operations in the third quarter of 2020 was RMB15.0 million, as compared to RMB40.2 million from the corresponding period in 2019. For the first nine months of 2020, loss from operations was RMB41.1 million, as compared to RMB107.2 million from the same period in 2019.

 

·                      Net loss attributable to ordinary shareholders in the third quarter of 2020 was RMB3.0 million, as compared to RMB47.9 million from the corresponding period in 2019. For the first nine months of 2020, net loss attributable to ordinary shareholders was RMB33.4 million, as compared to RMB134.5 million from the same period in 2019.

 

·                      Adjusted net loss attributable to ordinary shareholders (non-GAAP1) in the third quarter of 2020 was RMB2.7 million, as compared to RMB45.5million from the corresponding period in 2019. For the first nine months of 2020, non-GAAP net loss attributable to ordinary shareholders was RMB30.0 million, as compared to RMB126.8 million from the same period in 2019.

 


1  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.

 

1


 

THIRD QUARTER AND FIRST NINE MONTHS 2020 OPERATIONAL UPDATES

 

·                      Total number of active clients2 during the third quarter of 2020 was 712, as compared to 1,058 active clients during the third quarter of 2019.

 

·                      The aggregate value of wealth management products distributed by the Company during the third quarter of 2020 was RMB2.0 billion, a 26.3% decrease from the corresponding period in 2019. For the first nine months of 2020, the aggregate value of wealth management products distributed by the Company was RMB5.3 billion, a 33.3% decrease from the corresponding period in 2019.

 

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

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30, 2019

 

September 30, 2020

 

September 30, 2019

 

September 30, 2020

 

Product type

 

(RMB in millions, except percentages)

 

(RMB in millions, except percentages)

 

Fixed income products

 

2,013

 

76

%

1,100

 

56

%

5,746

 

72

%

3,283

 

62

%

Private equity products

 

451

 

17

%

378

 

19

%

1,412

 

18

%

1,003

 

19

%

Secondary market equity fund products

 

37

 

1

%

438

 

23

%

159

 

2

%

892

 

17

%

Other products

 

152

 

6

%

39

 

2

%

612

 

8

%

112

 

2

%

All products

 

2,653

 

100

%

1,955

 

100

%

7,929

 

100

%

5,290

 

100

%

 

·                      Jupai’s coverage network as of September 30, 2020 included 35 client centers covering 33 cities, as compared to 54 client centers covering 44 cities as of September 30, 2019.

 

·                      Total assets under management3 as of September 30, 2020 were RMB34.7 billion, as compared to RMB45.1 billion from September 30, 2019.

 

Assets under management — breakdown by product type

 

 

 

As of

 

 

 

September 30, 2019

 

September 30, 2020

 

Product type

 

(RMB in millions, except percentages)

 

Fixed income products

 

16,031

 

35

%

10,298

 

30

%

Private equity products

 

26,913

 

60

%

22,243

 

64

%

Secondary market equity fund products

 

942

 

2

%

946

 

3

%

Other products

 

1,218

 

3

%

1,211

 

3

%

All products

 

45,104

 

100

%

34,698

 

100

%

 


2  “Active clients” for a given period refer to clients who purchase wealth management products distributed by Jupai at least once during that given period.

 

3  “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.

 

2


 

“We are encouraged to see Jupai’s bottom line continue to improve in the third quarter with net loss attributable to ordinary shareholders declining by 93.8% compared with the same period last year and decreasing by 71.7% quarter over quarter. Our ongoing cost control measures and enhanced portfolio optimization will continue to support margin improvement going forward, even as investors maintain a cautious mood in the face of the global COVID-19 pandemic,” said Mr. Jianda Ni, Jupai’s chairman of the board and chief executive officer. “We are confident in the long-term prosperity of China’s wealth management industry and we will continue to execute our strategies for controlling costs, selecting high-quality products and enhancing our risk control system.”

 

Ms. Min Liu, Jupai’s chief financial officer, said, “Our effective cost control measures continued to drive margin improvement in the third quarter, with total operating costs decreasing by 54.9% compared with the same period last year. We are also pleased to see that the average wealth management product value distributed per advisor has considerably increased. We are confident that our ongoing enhancement of Jupai’s service network and incentive mechanisms alongside our efforts to streamline costs will drive improved bottom line results in the coming quarters. “

 

THIRD QUARTER AND FIRST NINE MONTHS 2020 FINANCIAL RESULTS

 

Net Revenues

 

Net revenues for the third quarter of 2020 were RMB85.1 million, a 53.2% decrease from the corresponding period in 2019, primarily due to decreases in one-time commissions and recurring management fees. Net revenues were RMB290.2 million for the first nine months of 2020, a decrease of 55.3% from the same period in 2019.

 

·                      Net revenues from one-time commissions for the third quarter of 2020 were RMB36.3 million, a 64.6% decrease from the corresponding period in 2019, 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 2020, net revenues from one-time commissions were RMB123.6 million, a decrease of 50.1% from the same period in 2019.

 

·                      Net revenues from recurring management fees for the third quarter of 2020 were RMB22.4 million, a 55.3% decrease from the corresponding period in 2019, primarily due to the decrease in the value of assets under management. RMB6.3 million and RMB17.4 million carried interest was recognized as part of Jupai’s recurring management fees in the third quarter of 2020 and 2019, respectively. For the first nine months of 2020, net revenues from recurring management fees were RMB80.4 million, a 74.1% decrease from the same period in 2019. RMB11.8 million and RMB156.0 million carried interest was recognized as part of Jupai’s recurring management fees for the first nine months of 2020 and 2019, respectively.

 

·                      Net revenues from recurring service fees for the third quarter of 2020 were RMB26.4 million, a 9.9% decrease from the corresponding period in 2019, primarily because the Company provided ongoing services to fewer product suppliers. The Company recognized RMB5.3 million and RMB1.8 million variable performance fees in the third quarter of 2020 and 2019, respectively. For the first nine months of 2020, net revenues from recurring service fees were RMB86.2 million, a 11.6% increase from the same period in 2019. The Company recognized RMB7.3 million and RMB1.8 million variable performance fees for the first nine months of 2020 and 2019, respectively.

 

·                      Net revenues from other service fees for the third quarter of 2020 were nil, the same as the corresponding period in 2019. For the first nine months of 2020, net revenues from other service fees were nil, as compared to RMB13.9 million from the same period in 2019.

 

3


 

Operating Costs and Expenses

 

Operating costs and expenses for the third quarter of 2020 were RMB100.2 million, a decrease of 54.9% from the corresponding period in 2019. For the first nine months of 2020, operating costs and expenses were RMB331.2 million, a decrease of 56.2% from the same period in 2019.

 

·                      Cost of revenues for the third quarter of 2020 was RMB41.6 million, a decrease of 60.8% from the corresponding period in 2019, 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 the cost control measures the Company adopted. For the first nine months of 2020, cost of revenues was RMB165.7 million, a decrease of 57.5% from the same period in 2019.

 

·                      Selling expenses for the third quarter of 2020 were RMB22.8 million, a decrease of 56.9% from the corresponding period in 2019, primarily due to the decrease in marketing and promotion expenses as a result of cost control and the decrease in revenues. For the first nine months of 2020, selling expenses were RMB66.8 million, a decrease of 57.2% from the same period in 2019.

 

·                      General and administrative expenses for the third quarter of 2020 were RMB36.4 million, a decrease of 46.6% from the corresponding period in 2019, mainly due to the cost control measures the Company adopted. For the first nine months of 2020, general and administrative expenses were RMB114.4 million, a decrease of 47.9% from the same period in 2019.

 

·                      Other operating income (government subsidies) received by the Company for the third quarter of 2020 was RMB0.6 million, a decrease of 87.9% from the corresponding period in 2019. For the first nine months of 2020, other operating income were RMB15.7 million, an increase of 54.1% from the same period in 2019. Government subsidies were recorded when received, with their availability and amount dependent upon government policies.

 

Operating margin for the third quarter of 2020 was -17.6%, as compared to -22.1% for the corresponding period in 2019. For the first nine months of 2020, operating margin was -14.2%, compared to -16.5% for the same period in 2019.

 

Income tax benefits for the third quarter of 2020 were RMB10.6 million, as compared to income tax expenses of RMB10.3 million for the corresponding period in 2019, primarily due to taxable losses for the third quarter of 2020. For the first nine months of 2020, income tax expenses were RMB0.8 million, a decrease of 97.7% from the same period in 2019.

 

Net Loss

 

·                      Net Loss

 

·                      Net loss attributable to ordinary shareholders for the third quarter of 2020 was RMB3.0 million, as compared to RMB47.9 million from the corresponding period in 2019. For the first nine months of 2020, net loss attributable to ordinary shareholders was RMB33.4 million, as compared to RMB134.5 million from the same period in 2019.

 

·                      Net margin attributable to ordinary shareholders for the third quarter of 2020 was -3.5%, as compared to -26.3% from the corresponding period in 2019. For the first nine months of 2020, net margin attributable to ordinary shareholders was -11.5%, compared to -20.7% for the same period in 2019.

 

·                      Net loss attributable to ordinary shareholders per basic and diluted American depositary share (“ADS”) for the third quarter of 2020 was RMB0.09 and RMB0.09, respectively, as compared to RMB1.42 and RMB1.42, respectively, from the corresponding period in 2019. For the first nine months of 2020, net loss attributable to ordinary shareholders per basic and diluted ADS was RMB1.00 and RMB1.00, respectively, as compared to RMB4.00 and RMB4.00, respectively, for the same period in 2019.

 

4


 

·                      Adjusted Net Loss (non-GAAP)

 

·                      Adjusted net loss attributable to ordinary shareholders (non-GAAP) for the third quarter of 2020 was RMB2.7 million, as compared to RMB45.5 million from the corresponding period in 2019. For the first nine months of 2020, non-GAAP net loss attributable to ordinary shareholders was RMB30.0 million, as compared to RMB126.8 million from the same period in 2019.

 

·                      Adjusted net margin attributable to ordinary shareholders (non-GAAP) for the third quarter of 2020 was -3.2%, as compared to -25.0% from the corresponding period in 2019. For the first nine months of 2020, non-GAAP net margin attributable to ordinary shareholders was -10.3%, as compared to -19.5% for the same period in 2019.

 

·                      Adjusted net loss attributable to ordinary shareholders per diluted ADS (non-GAAP) for the third quarter of 2020 was RMB0.08, as compared to RMB1.35 from the corresponding period in 2019. For the first nine months of 2020, non-GAAP net loss attributable to ordinary shareholders per diluted ADS was RMB0.90, as compared to RMB3.77 for the same period in 2019.

 

Repurchase of Shares

 

As of November 15, 2020, we had repurchased 539,142 ADSs as part of the Company’s share repurchase program of up to US$10 million announced in February 2020, at a total cost of US$741,554, inclusive of transaction charges.

 

Balance Sheet and Cash Flow

 

As of September 30, 2020, the Company had RMB666.0 million in cash, cash equivalents and restricted cash, as compared to RMB712.3 million as of December 31, 2019.

 

Net cash used in operating activities during the third quarter of 2020 was RMB17.4 million. For the first nine months of 2020, net cash provided by operating activities was RMB3.2 million.

 

Net cash used in investing activities during the third quarter of 2020 was RMB25.2 million. For the first nine months of 2020, net cash used in investing activities was RMB42.4 million.

 

Net cash used in financing activities during the third quarter of 2020 was nil. For the first nine months of 2020, net cash used in financing activities was RMB7.1 million.

 

CONFERENCE CALL

 

Jupai’s management will host an earnings conference call on November 23, 2020 at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time).

 

Please register in advance for the conference call using the link provided below. Upon registering, you will be provided with a calendar invite with participant dial-in numbers, passcode, and a unique access pin by email. To join the conference, simply dial the number you receive after preregistering, enter the passcode followed by your pin, and you will join the conference instantly.

 

PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/6077991

 

A replay of the conference call may be accessed by phone at the following number until December 1, 2020:

 

5


 

U.S./International:

+1-855-452-5696 or +61-2-8199-0299

Mainland China:

400-602-2065

Hong Kong:

800-963-117

Singapore:

800-616-2305

Passcode:

6077991

 

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 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. 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.

 

6


 

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.

 

Contacts:

Jupai Investor Relations

Email: [email protected]

 

Philip Lisio

The Foote Group

Phone: +86 (10) 8429 9544

Email: [email protected]

 

— FINANCIAL AND OPERATIONAL TABLES FOLLOW —

 

7


 

Jupai Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

(In RMB, except for USD data)

 

 

 

As of

 

 

 

December 31,

 

December 31,

 

September 30,

 

September 30,

 

 

 

2019

 

2019

 

2020

 

2020

 

 

 

RMB

 

USD4

 

RMB

 

USD5

 

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

711,205,698

 

102,158,306

 

664,858,961

 

97,923,141

 

Restricted cash

 

1,100,000

 

158,005

 

1,100,000

 

162,012

 

Other receivables

 

14,125,535

 

2,029,006

 

62,694,621

 

9,233,921

 

Amounts due from related parties

 

95,193,003

 

13,673,619

 

43,477,116

 

6,403,487

 

Other current assets

 

4,984,541

 

715,985

 

27,402,462

 

4,035,946

 

Total current assets

 

826,608,777

 

118,734,921

 

799,533,160

 

117,758,507

 

Long-term investments

 

228,950,000

 

32,886,610

 

228,950,000

 

33,720,690

 

Investment in affiliates

 

107,541,000

 

15,447,298

 

100,175,289

 

14,754,225

 

Amounts due from related parties — non-current

 

229,117,743

 

32,910,705

 

228,976,558

 

33,724,602

 

Property and equipment, net

 

27,834,760

 

3,998,213

 

19,827,406

 

2,920,261

 

Intangible assets, net

 

38,250,479

 

5,494,338

 

35,105,011

 

5,170,409

 

Other non-current assets

 

17,886,020

 

2,569,166

 

14,270,303

 

2,101,790

 

Right-of-use assets

 

68,950,101

 

9,904,062

 

47,972,473

 

7,065,582

 

Deferred tax assets

 

4,608,063

 

661,907

 

4,297,051

 

632,887

 

Total Assets

 

1,549,746,943

 

222,607,220

 

1,479,107,251

 

217,848,953

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accrued payroll and welfare expenses

 

58,318,063

 

8,376,866

 

54,443,979

 

8,018,731

 

Income tax payable

 

82,800,208

 

11,893,506

 

85,482,292

 

12,590,181

 

Other tax payable

 

695,081

 

99,842

 

16,883,060

 

2,486,606

 

Amounts due to related parties — current

 

19,439,664

 

2,792,333

 

18,911,359

 

2,785,342

 

Deferred revenue from related parties

 

42,053,959

 

6,040,673

 

11,441,131

 

1,685,096

 

Deferred revenue

 

35,674,503

 

5,124,322

 

31,678,345

 

4,665,716

 

Other current liabilities

 

78,201,072

 

11,232,881

 

77,350,676

 

11,392,524

 

Total current liabilities

 

317,182,550

 

45,560,423

 

296,190,842

 

43,624,196

 

Deferred revenue — non-current from related parties

 

4,917,845

 

706,404

 

11,984,597

 

1,765,140

 

Deferred revenue — non-current

 

311,651

 

44,766

 

1,404,151

 

206,809

 

Operating Lease Liabilities — non-current

 

28,518,789

 

4,096,468

 

15,535,487

 

2,288,130

 

Total Liabilities

 

350,930,835

 

50,408,061

 

325,115,077

 

47,884,275

 

Equity

 

1,198,816,108

 

172,199,159

 

1,153,992,174

 

169,964,678

 

Total Liabilities and Total Shareholders’ Equity

 

1,549,746,943

 

222,607,220

 

1,479,107,251

 

217,848,953

 

 


4  The conversion of Renminbi (RMB) into U.S. dollars (US$) in this column is based on the noon buying rate on December 31, 2019, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System, which was RMB 6.9618 to US$1.00.

 

5  The conversion of Renminbi (RMB) into U.S. dollars (US$) in this column is based on the noon buying rate on September 30, 2020, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System, which was RMB 6.7896 to US$1.00.

 

8


 

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,

 

September 30,

 

 

 

2019

 

2019

 

2020

 

2020

 

 

 

RMB

 

USD6

 

RMB

 

USD7

 

Revenues

 

 

 

 

 

 

 

 

 

Third party revenues

 

108,552,036

 

15,186,989

 

48,755,950

 

7,180,975

 

Related party revenues

 

73,997,411

 

10,352,618

 

36,908,909

 

5,436,095

 

Total revenues

 

182,549,447

 

25,539,607

 

85,664,859

 

12,617,070

 

Taxes and surcharges

 

(457,767

)

(64,044

)

(524,582

)

(77,263

)

Net revenues

 

182,091,680

 

25,475,563

 

85,140,277

 

12,539,807

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

(105,905,745

)

(14,816,759

)

(41,561,614

)

(6,121,364

)

Selling expenses

 

(52,872,376

)

(7,397,117

)

(22,794,092

)

(3,357,207

)

General and administrative expenses

 

(68,047,595

)

(9,520,209

)

(36,353,384

)

(5,354,274

)

Other operating income — government subsidies

 

4,557,939

 

637,679

 

552,588

 

81,387

 

Total operating cost and expenses

 

(222,267,777

)

(31,096,406

)

(100,156,502

)

(14,751,458

)

Loss from operations

 

(40,176,097

)

(5,620,843

)

(15,016,225

)

(2,211,651

)

 

 

 

 

 

 

 

 

 

 

Interest income

 

1,582,036

 

221,335

 

952,648

 

140,310

 

Investment (loss) income

 

(4,670,453

)

(653,420

)

431,110

 

63,495

 

Other income (loss)

 

490,756

 

68,659

 

(484,582

)

(71,371

)

Total other (loss) income

 

(2,597,661

)

(363,426

)

899,176

 

132,434

 

Loss before taxes and loss from equity in affiliates

 

(42,773,758

)

(5,984,269

)

(14,117,049

)

(2,079,217

)

Income tax (expense) benefit

 

(10,288,783

)

(1,439,454

)

10,562,496

 

1,555,688

 

Gain from equity in affiliates

 

193,922

 

27,131

 

2,001,265

 

294,754

 

Net loss

 

(52,868,619

)

(7,396,592

)

(1,553,288

)

(228,775

)

Net loss (income) attributable to non-controlling interests

 

4,972,227

 

695,640

 

(1,415,850

)

(208,532

)

Net loss attributable to ordinary shareholders

 

(47,896,392

)

(6,700,952

)

(2,969,138

)

(437,307

)

 

 

 

 

 

 

 

 

 

 

Net loss per ADS:

 

 

 

 

 

 

 

 

 

Basic

 

(1.42

)

(0.20

)

(0.09

)

(0.01

)

Diluted

 

(1.42

)

(0.20

)

(0.09

)

(0.01

)

Weighted average number of ADSs used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

33,622,879

 

33,622,879

 

33,314,139

 

33,314,139

 

Diluted

 

33,622,879

 

33,622,879

 

33,314,139

 

33,314,139

 

 


6  The conversion of data from Renminbi (RMB) into U.S. dollars (US$) for three months ended and nine months ended September 30, 2019 in this table and the following tables 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.

 

7  The conversion of data from Renminbi (RMB) into U.S. dollars (US$) for three months ended and nine months ended September 30, 2020 in this table and the following tables is based on the noon buying rate on September 30, 2020, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System, which was RMB 6.7896 to US$1.00.

 

9


 

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,

 

September 30,

 

 

 

2019

 

2019

 

2020

 

2020

 

 

 

RMB

 

USD

 

RMB

 

USD

 

Revenues

 

 

 

 

 

 

 

 

 

Third party revenues

 

288,638,288

 

40,381,981

 

171,404,713

 

25,245,186

 

Related party revenues

 

363,828,190

 

50,901,435

 

119,832,034

 

17,649,351

 

Total revenues

 

652,466,478

 

91,283,416

 

291,236,747

 

42,894,537

 

Taxes and surcharges

 

(3,459,041

)

(483,938

)

(1,071,880

)

(157,871

)

Net revenues

 

649,007,437

 

90,799,478

 

290,164,867

 

42,736,666

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

(390,307,152

)

(54,605,978

)

(165,700,449

)

(24,405,038

)

Selling expenses

 

(156,322,747

)

(21,870,356

)

(66,834,259

)

(9,843,622

)

General and administrative expenses

 

(219,733,972

)

(30,741,913

)

(114,387,064

)

(16,847,394

)

Other operating income — government subsidies

 

10,179,802

 

1,424,207

 

15,685,703

 

2,310,254

 

Total operating cost and expenses

 

(756,184,069

)

(105,794,040

)

(331,236,069

)

(48,785,800

)

Loss from operations

 

(107,176,632

)

(14,994,562

)

(41,071,202

)

(6,049,134

)

 

 

 

 

 

 

 

 

 

 

Interest income

 

4,934,136

 

690,311

 

3,582,268

 

527,611

 

Investment (loss) income

 

(2,388,143

)

(334,113

)

2,228,283

 

328,190

 

Other income

 

2,828,849

 

395,770

 

1,303,594

 

191,999

 

Total other income

 

5,374,842

 

751,968

 

7,114,145

 

1,047,800

 

Loss before taxes and loss from equity in affiliates

 

(101,801,790

)

(14,242,594

)

(33,957,057

)

(5,001,334

)

Income tax expense

 

(33,099,743

)

(4,630,825

)

(755,386

)

(111,256

)

Loss from equity in affiliates

 

(4,928,441

)

(689,514

)

(2,493,953

)

(367,320

)

Net loss

 

(139,829,974

)

(19,562,933

)

(37,206,396

)

(5,479,910

)

Net loss attributable to non-controlling interests

 

5,296,403

 

740,994

 

3,852,219

 

567,371

 

Net loss attributable to ordinary shareholders

 

(134,533,571

)

(18,821,939

)

(33,354,177

)

(4,912,539

)

 

 

 

 

 

 

 

 

 

 

Net loss per ADS:

 

 

 

 

 

 

 

 

 

Basic

 

(4.00

)

(0.56

)

(1.00

)

(0.15

)

Diluted

 

(4.00

)

(0.56

)

(1.00

)

(0.15

)

Weighted average number of ADSs used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

33,613,659

 

33,613,659

 

33,480,325

 

33,480,325

 

Diluted

 

33,613,659

 

33,613,659

 

33,480,325

 

33,480,325

 

 

10


 

Jupai Holdings Limited

Unaudited Condensed Comprehensive Income Statements

(In RMB, except for USD data)

 

 

 

Three months ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2019

 

2019

 

2020

 

2020

 

 

 

RMB

 

USD

 

RMB

 

USD

 

Net loss

 

(52,868,619

)

(7,396,592

)

(1,553,288

)

(228,775

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

Change in cumulative foreign currency translation adjustment

 

8,038,238

 

1,124,591

 

(9,633,820

)

(1,418,908

)

Other comprehensive income (loss)

 

8,038,238

 

1,124,591

 

(9,633,820

)

(1,418,908

)

Comprehensive loss

 

(44,830,381

)

(6,272,001

)

(11,187,108

)

(1,647,683

)

Less: Comprehensive (loss) income attributable to non-controlling interests

 

(4,945,351

)

(691,880

)

1,491,181

 

219,627

 

Comprehensive loss attributable to ordinary shareholders

 

(39,885,030

)

(5,580,121

)

(12,678,289

)

(1,867,310

)

 

11


 

Jupai Holdings Limited

Unaudited Condensed Comprehensive Income Statements

(In RMB, except for USD data)

 

 

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2019

 

2019

 

2020

 

2020

 

 

 

RMB

 

USD

 

RMB

 

USD

 

Net loss

 

(139,829,974

)

(19,562,933

)

(37,206,396

)

(5,479,910

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

Change in cumulative foreign currency translation adjustment

 

8,312,901

 

1,163,018

 

(6,107,188

)

(899,491

)

Other comprehensive income (loss)

 

8,312,901

 

1,163,018

 

(6,107,188

)

(899,491

)

Comprehensive loss

 

(131,517,073

)

(18,399,915

)

(43,313,584

)

(6,379,401

)

Less: Comprehensive loss attributable to non-controlling interests

 

(5,266,919

)

(736,869

)

(3,814,691

)

(561,843

)

Comprehensive loss attributable to ordinary shareholders

 

(126,250,154

)

(17,663,046

)

(39,498,893

)

(5,817,558

)

 

12


 

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,

 

 

 

2019

 

2020

 

 

 

RMB

 

RMB

 

Net margin attributable to ordinary shareholders

 

-26.3

%

-3.5

%

Adjusted net margin attributable to ordinary shareholders (non-GAAP)

 

-25.0

%

-3.2

%

 

 

 

 

 

 

Net loss attributable to ordinary shareholders

 

(47,896,392

)

(2,969,138

)

Adjustment for share-based compensation (net of tax effect of nil for both three months ended September 30, 2019 and 2020)

 

2,409,227

 

280,826

 

Adjusted net loss attributable to ordinary shareholders (non-GAAP)

 

(45,487,165

)

(2,688,312

)

 

 

 

 

 

 

Net loss attributable to ordinary shareholders per ADS, diluted

 

(1.42

)

(0.09

)

Adjusted net loss attributable to ordinary shareholders per ADS, diluted (non-GAAP)

 

(1.35

)

(0.08

)

 

 

 

 

 

 

Weighted average number of ADSs used in computation:

 

 

 

 

 

Diluted

 

33,622,879

 

33,314,139

 

 

13


 

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,

 

 

 

2019

 

2020

 

 

 

RMB

 

RMB

 

Net margin attributable to ordinary shareholders

 

-20.7

%

-11.5

%

Adjusted net margin attributable to ordinary shareholders (non-GAAP)

 

-19.5

%

-10.3

%

 

 

 

 

 

 

Net loss attributable to ordinary shareholders

 

(134,533,571

)

(33,354,177

)

Adjustment for share-based compensation (net of tax effect of nil for both nine months ended September 30, 2019 and 2020)

 

7,194,491

 

3,328,868

 

Adjustment for amortization of intangible assets related to acquisition (net of tax effect of RMB196,316 and nil for nine months ended September 30, 2019 and 2020, respectively)

 

588,954

 

 

Adjusted net loss attributable to ordinary shareholders (non-GAAP)

 

(126,750,126

)

(30,025,309

)

 

 

 

 

 

 

Net loss attributable to ordinary shareholders per ADS, diluted

 

(4.00

)

(1.00

)

Adjusted net loss attributable to ordinary shareholders per ADS, diluted (non-GAAP)

 

(3.77

)

(0.90

)

 

 

 

 

 

 

Weighted average number of ADSs used in computation:

 

 

 

 

 

Diluted

 

33,613,659

 

33,480,325

 

 

14




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