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 August 2019

 


 

Commission File Number: 001-37485

 


 

Jupai Holdings Limited

 

Yinli Building, 8/F

788 Guangzhong Road

Jingan District

Shanghai 200072

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: August 6, 2019

 

2


 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

3


Exhibit 99.1

 

Jupai Reports Second Quarter 2019 Results

 

SHANGHAI — August 5, 2019 — 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 second quarter and six months ended June 30, 2019.

 

SECOND QUARTER AND FIRST HALF 2019 FINANCIAL HIGHLIGHTS

 

·                      Net revenues in the second quarter of 2019 were RMB185.9 million (US$127.1 million), a decrease of 58.1% from the corresponding period in 2018. For the first half of 2019, net revenues were RMB466.9 million (US$68.0 million), a decrease of 46.7% from the same period in 2018.

 

(RMB ‘000, except percentages)

 

Q2 2018

 

Q2 2018 %

 

Q2 2019

 

Q2 2019 %

 

YoY Change %

 

One-time commissions

 

282,243

 

63.6

%

86,510

 

46.5

%

-69.3

%

Recurring management fees

 

121,696

 

27.4

%

67,756

 

36.5

%

-44.3

%

Recurring service fees

 

11,431

 

2.6

%

31,603

 

17.0

%

176.5

%

Other service fees

 

28,196

 

6.4

%

 

 

-100.0

%

Total net revenues

 

443,566

 

100.0

%

185,869

 

100.0

%

-58.1

%

 

(RMB ‘000, except percentages)

 

H1 2018

 

H1 2018 %

 

H1 2019

 

H1 2019 %

 

YoY Change %

 

One-time commissions

 

558,677

 

63.7

%

145,141

 

31.0

%

-74.0

%

Recurring management fees

 

244,604

 

27.9

%

259,978

 

55.7

%

6.3

%

Recurring service fees

 

26,489

 

3.0

%

47,893

 

10.3

%

80.8

%

Other service fees

 

47,012

 

5.4

%

13,904

 

3.0

%

-70.4

%

Total net revenues

 

876,782

 

100.0

%

466,916

 

100.0

%

-46.7

%

 

·                      Loss from operations in the second quarter of 2019 was RMB55.2 million (US$8.0 million), compared to income from operations of RMB160.3 million from the corresponding period in 2018. For the first half of 2019, loss from operations was RMB67.0 million (US$9.8 million), compared to income from operations of RMB312.8 million from the same period in 2018.

 

·                      Net loss attributable to ordinary shareholders in the second quarter of 2019 was RMB61.0 million (US$8.9 million), compared to net income attributable to ordinary shareholders of RMB87.8 million from the corresponding period in 2018. For the first half of 2019, net loss attributable to ordinary shareholders was RMB86.6 million (US$12.6 million), compared to net income attributable to ordinary shareholders of RMB203.7 million from the same period in 2018.

 

·                      Non-GAAP2 net loss attributable to ordinary shareholders in the second quarter of 2019 was RMB58.6 million (US$8.5 million), compared to non-GAAP net income attributable to ordinary shareholders of RMB115.5 million from the corresponding period in 2018. For the first half of 2019, non-GAAP net loss attributable to ordinary shareholders was RMB81.3 million (US$11.8 million), compared to non-GAAP net income attributable to ordinary shareholders of RMB241.6 million from the same period in 2018.

 


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 June 28, 2019, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System, which was RMB 6.8650 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.

 

1


 

SECOND QUARTER AND FIRST HALF 2019 OPERATIONAL UPDATES

 

·                      Total number of active clients3 during the second quarter of 2019 was 1,039.

 

·                      The aggregate value of wealth management products distributed by the Company during the second quarter of 2019 was RMB2.5 billion (US$0.4 billion), a 74.4% decrease from the corresponding period in 2018. For the first half of 2019, the aggregate value of wealth management products distributed by the Company was RMB5.3 billion (US$0.8 billion), a 74.4% decrease from the corresponding period in 2018.

 

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

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

Product type

 

(RMB in millions, except percentages)

 

(RMB in millions, except percentages)

 

Fixed income products

 

1,286

 

13

%

1,825

 

73

%

5,219

 

25

%

3,733

 

71

%

Private equity products

 

7,949

 

82

%

376

 

15

%

13,991

 

68

%

961

 

18

%

Secondary market equity fund products

 

268

 

3

%

70

 

3

%

960

 

5

%

122

 

2

%

Other products

 

225

 

2

%

222

 

9

%

456

 

2

%

460

 

9

%

All products

 

9,728

 

100

%

2,493

 

100

%

20,626

 

100

%

5,276

 

100

%

 

·                      Jupai’s coverage network as of June 30, 2019 included 61 client centers covering 45 cities, as compared to 76 client centers covering 48 cities as of June 30, 2018.

 

·                      Total assets under management4 as of June 30, 2019 were RMB47.0 billion (US$6.8 billion), a 17.1% decrease from June 30, 2018.

 

Assets under management — breakdown by product type

 

 

 

As of

 

 

 

June 30, 2018

 

June 30, 2019

 

Product type

 

(RMB in millions, except percentages)

 

Fixed income products

 

22,766

 

40

%

16,482

 

35

%

Private equity products

 

30,792

 

54

%

28,331

 

60

%

Secondary market equity fund products

 

2,236

 

4

%

945

 

2

%

Other products

 

860

 

2

%

1,214

 

3

%

All products

 

56,654

 

100

%

46,972

 

100

%

 


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.

 

2


 

“Although the second quarter of 2019 remained challenging for Jupai, we saw initial signs of stabilization in our core business,” said Mr. Jianda Ni, Jupai’s chairman of the board and chief executive officer. “Despite sustained weakness in investor confidence, our cost control efforts began to pay off, adding to our bottom line performance in the second quarter. If the performance fee income from the disposal of Focus Media shares was excluded from our first quarter results, our net loss attributable to ordinary shareholders in the second quarter would represent a substantial recovery from the first quarter.”

 

“Jupai will continue to execute our three strategies to optimize our business and enhance profitability. Firstly, we will continue to develop our real estate equity products, as we believe that real estate remains an asset class with relatively low investment risk, especially compared with asset categories such as consumer credit and supply chain management products. Secondly, we will enhance our risk control system to further build investor confidence. Thirdly, we target to achieve incremental growth in our overseas business. We believe that these strategies will help Jupai capture market opportunities as investor sentiment and the wealth management industry recover.”

 

Ms. Min Liu, Jupai’s chief financial officer, said, “The various cost control measures that Jupai began implementing several quarters ago have begun to bear fruit. We are encouraged to see overall operating expenses, especially our cost of revenues, decline on a year-over-year basis for the first time this quarter. We expect to realize additional cost reductions in the coming quarters as we further downsize our workforce, amend our incentive schemes, optimize our coverage network and streamline our business operating procedures.”

 

SECOND QUARTER AND FIRST HALF 2019 FINANCIAL RESULTS

 

Net Revenues

 

Net revenues for the second quarter of 2019 were RMB185.9 million (US$27.1 million), a 58.1% decrease from the corresponding period in 2018, primarily due to decreases in both one-time commissions and recurring management fees. Net revenues were RMB466.9 million (US$68.0 million) for the first half of 2019, a decrease of 46.7% from the same period in 2018.

 

·                      Net revenues from one-time commissions for the second quarter of 2019 were RMB86.5 million (US$12.6 million), a 69.3% 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 half of 2019, net revenues from one-time commissions were RMB145.1 million (US$21.1 million), a decrease of 74.0% from the same period in 2018.

 

·                      Net revenues from recurring management fees for the second quarter of 2019 were RMB67.8 million (US$9.9 million), a 44.3% decrease from the corresponding period in 2018, primarily due to the decrease in the value of assets under management. RMB11.1 million (US$1.6 million) and RMB23.3 million carried interest were recognized as part of Jupai’s recurring management fees in the second quarter of 2019 and 2018, respectively. For the first half of 2019, net revenues from recurring management fees were RMB260.0 million (US$37.9 million), a 6.3% increase from the same period in 2018. RMB138.5 million (US$20.2 million) and RMB44.0 million carried interest was recognized as part of Jupai’s recurring management fees for the first half of 2019 and the same period in 2018, respectively.

 

·                      Net revenues from recurring service fees for the second quarter of 2019 were RMB31.6 million (US$4.6 million), a 176.5% increase from the corresponding period in 2018, primarily because the Company provided ongoing services to more product suppliers. The Company recognized nil and RMB0.3 million variable performance fees in the second quarter of 2019 and 2018, respectively. For the first half of 2019, net revenues from recurring service fees were RMB47.9 million (US$7.0 million), an 80.8% increase from the same period in 2018. The Company recognized nil and RMB0.3 million variable performance fees for the first half of 2019 and the same period in 2018, respectively.

 

3


 

·                      Net revenues from other service fees for the second 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 half of 2019, net revenues from other service fees were RMB13.9 million (US$2.0 million), a decrease of 70.4% from the same period in 2018.

 

Operating Costs and Expenses

 

Operating costs and expenses for the second quarter of 2019 were RMB241.0 million (US$35.1 million), a 14.9% decrease from the corresponding period in 2018. For the first half of 2019, operating costs and expenses were RMB533.9 million (US$77.8 million), a decrease of 5.3% from the same period in 2018.

 

·                      Cost of revenues for the second quarter of 2019 was RMB108.5 million (US$15.8 million), a 37.6% 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 half of 2019, cost of revenues was RMB284.4 million (US$41.4 million), a decrease of 6.6% from the same period in 2018.

 

·                      Selling expenses for the second quarter of 2019 were RMB49.2 million (US$7.2 million), a 31.4% 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 half of 2019, selling expenses were RMB103.5 million (US$15.1 million), a decrease of 34.2% from the same period in 2018.

 

·                      General and administrative expenses for the second quarter of 2019 were RMB88.9 million (US$13.0 million), a 69.3% increase from the corresponding period in 2018, mainly due to provision for doubtful accounts of RMB31.7 million (US$4.6 million), and service fee for client relationship maintenance which may recur in the following periods. For the first half of 2019, general and administrative expenses were RMB151.7 million (US$22.1 million), an increase of 29.0% from the same period in 2018.

 

·                      Other operating income (government subsidies) received by the Company in the second quarter of 2019 was RMB5.6 million (US$0.8 million), a 62.3% decrease from the corresponding period in 2018. For the first half of 2019, other operating income was RMB5.6 million (US$0.8 million), a decrease of 62.6% 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 second quarter of 2019 was -29.7%, compared to 36.1% for the corresponding period in 2018. For the first half of 2019, operating margin was -14.3%, compared to 35.7% for the same period in 2018.

 

Income tax expenses for the second quarter of 2019 were RMB7.6 million (US$1.1 million), an 84.5% decrease from the corresponding period in 2018. For the first half of 2019, income tax expenses were RMB22.8 million (US$3.3 million), a decrease of 74.2% from the same period in 2018, primarily due to a decrease in taxable income.

 

Net Income

 

·                      Net Income

 

·                      Net loss attributable to ordinary shareholders for the second quarter of 2019 was RMB61.0 million (US$8.9 million), compared to net income attributable to ordinary shareholders of RMB87.8 million from the corresponding period in 2018. For the first half of 2019, net loss attributable to ordinary shareholders was RMB86.6 million (US$12.6 million), compared to net income attributable to ordinary shareholders of RMB203.7 million from the same period in 2018.

 

4


 

·                      Net margin attributable to ordinary shareholders for the second quarter of 2019 was -32.8%, compared to 19.8% for the corresponding period in 2018. For the first half of 2019, net margin attributable to ordinary shareholders was -18.6%, compared to 23.2% for the same period in 2018.

 

·                      Net loss attributable to ordinary shareholders per basic and diluted American depositary share (“ADS”) for the second quarter of 2019 were RMB1.82 (US$0.26) and RMB1.82 (US$0.26), respectively, as compared to net income attributable to ordinary shareholders per basic and diluted ADS of RMB2.63 and RMB2.49, respectively, for the corresponding period in 2018. For the first half of 2019, net loss attributable to ordinary shareholders per basic and diluted ADS was RMB2.58 (US$0.38) and RMB2.58 (US$0.38), respectively, as compared to net income attributable to ordinary shareholders per basic and diluted ADS of RMB6.12 and RMB5.79, respectively, for the same period in 2018.

 

·                      Non-GAAP Net Income

 

·                      Non-GAAP net loss attributable to ordinary shareholders for the second quarter of 2019 was RMB58.6 million (US$8.5 million), compared to non-GAAP net income attributable to ordinary shareholders of RMB115.5 million from the corresponding period in 2018. For the first half of 2019, non-GAAP net loss attributable to ordinary shareholders was RMB81.3 million (US$11.8 million), compared to non-GAAP net income attributable to ordinary shareholders of RMB241.6 million from the same period in 2018.

 

·                      Non-GAAP net margin attributable to ordinary shareholders for the second quarter of 2019 was -31.5%, as compared to 26.0% for the corresponding period in 2018. For the first half of 2019, non-GAAP net margin attributable to ordinary shareholders was -17.4%, as compared to 27.6% for the same period in 2018.

 

·                      Non-GAAP net loss attributable to ordinary shareholders per diluted ADS for the second quarter of 2019 was RMB1.74 (US$0.25), as compared to non-GAAP net income attributable to ordinary shareholders per diluted ADS of RMB3.28 for the corresponding period in 2018. For the first half of 2019, non-GAAP net loss attributable to ordinary shareholders per diluted ADS was RMB2.42 (US$0.35), as compared to non-GAAP net income attributable to ordinary shareholders per diluted ADS of RMB6.87 for the same period in 2018.

 

Balance Sheet and Cash Flow

 

As of June 30, 2019, the Company had RMB1,119.3 million (US$163.0 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 second quarter of 2019 was RMB127.9 million (US$18.6 million). For the first half of 2019, net cash used in operating activities was RMB124.5 million (US$18.1 million).

 

Net cash provided by investing activities during the second quarter of 2019 was RMB180.7 million (US$26.3 million). For the first half of 2019, net cash used in investing activities was RMB58.8 million (US$8.6 million).

 

Net cash provided by financing activities during the second quarter of 2019 was nil. For the first half of 2019, net cash provided by financing activities was RMB29.6 thousand (US$4.3 thousand).

 

CONFERENCE CALL

 

Jupai’s management will host an earnings conference call on August 5, 2019 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time).

 

5


 

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:

 

8292878

 

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 August 12, 2019:

 

U.S./International:

 

+1-855-452-5696

Hong Kong:

 

800-963-117

Mainland China:

 

400-632-2162

Singapore:

 

800-616-2305

Passcode:

 

8292878

 

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.

 

6


 

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 and 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.

 

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.

 

7


 

Contacts:

 

Jupai Holdings Limited

Harry He

Director of Investor Relations

Jupai Holdings Limited

Phone: +86 (21) 6026 9129

Email: ir@jpinvestment.cn

 

Philip Lisio

The Foote Group

Phone: +86 (10) 8429 9544

Email: Jupai-IR@thefootegroup.com

 

— FINANCIAL AND OPERATIONAL TABLES FOLLOW —

 

8


 

Jupai Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

(In RMB, except for USD data)

 

 

 

As of

 

 

 

December 31,

 

June 30,

 

June 30,

 

 

 

2018

 

2019

 

2019

 

 

 

RMB

 

RMB

 

USD

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

1,298,565,042

 

1,115,281,148

 

162,459,016

 

Restricted cash

 

4,000,000

 

4,000,000

 

582,666

 

Short-term investments

 

4,723,612

 

4,723,612

 

688,072

 

Accounts receivable

 

39,633,035

 

20,310,601

 

2,958,573

 

Other receivables

 

20,493,145

 

19,256,156

 

2,804,975

 

Amounts due from related parties

 

199,331,694

 

119,970,049

 

17,475,608

 

Other current assets

 

15,320,791

 

3,810,008

 

554,990

 

Total current assets

 

1,582,067,319

 

1,287,351,574

 

187,523,900

 

Long-term investments

 

58,950,000

 

91,508,482

 

13,329,713

 

Investment in affiliates

 

67,262,431

 

111,665,536

 

16,265,920

 

Amounts due from related parties — non-current

 

48,626,353

 

34,470,230

 

5,021,155

 

Property and equipment, net

 

36,267,042

 

27,389,579

 

3,989,742

 

Intangible assets, net

 

58,124,608

 

40,253,224

 

5,863,543

 

Goodwill

 

297,031

 

 

 

Other non-current assets

 

27,914,021

 

26,146,417

 

3,808,655

 

Right-of-use assets

 

 

138,856,781

 

20,226,771

 

Deferred tax assets

 

100,985,228

 

100,985,228

 

14,710,157

 

Total Assets

 

1,980,494,033

 

1,858,627,051

 

270,739,556

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accrued payroll and welfare expenses

 

116,653,658

 

64,176,449

 

9,348,354

 

Income tax payable

 

227,537,993

 

149,529,745

 

21,781,463

 

Other tax payable

 

43,009,523

 

22,075,181

 

3,215,613

 

Amounts due to related parties — current

 

31,105,111

 

31,756,939

 

4,625,920

 

Deferred revenue from related parties

 

111,720,785

 

94,717,554

 

13,797,167

 

Deferred revenue

 

18,949,097

 

27,745,025

 

4,041,519

 

Other current liabilities

 

39,929,945

 

100,604,022

 

14,654,628

 

Total current liabilities

 

588,906,112

 

490,604,915

 

71,464,664

 

Deferred revenue — non-current from related parties

 

22,096,306

 

10,803,589

 

1,573,720

 

Deferred revenue — non-current

 

2,144,593

 

514,937

 

75,009

 

Operating Lease Liabilities — non-current

 

 

75,529,198

 

11,002,068

 

Deferred tax liabilities

 

198,187

 

 

 

Total Liabilities

 

613,345,198

 

577,452,639

 

84,115,461

 

Equity

 

1,367,148,835

 

1,281,174,412

 

186,624,095

 

Total Liabilities and Total Shareholders’ Equity

 

1,980,494,033

 

1,858,627,051

 

270,739,556

 

 

9


 

Jupai Holdings Limited

Unaudited Condensed Consolidated Income Statements

(In RMB, except for USD data and ADS data)

 

 

 

Three months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

 

 

2018

 

2019

 

2019

 

 

 

RMB

 

RMB

 

USD

 

Revenues

 

 

 

 

 

 

 

Third party revenues

 

70,460,817

 

103,698,922

 

15,105,451

 

Related party revenues

 

374,857,647

 

84,003,914

 

12,236,550

 

Total revenues

 

445,318,464

 

187,702,836

 

27,342,001

 

Taxes and surcharges

 

(1,752,939

)

(1,833,461

)

(267,074

)

Net revenues

 

443,565,525

 

185,869,375

 

27,074,927

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of revenues

 

(173,905,280

)

(108,523,737

)

(15,808,265

)

Selling expenses

 

(71,771,603

)

(49,210,902

)

(7,168,376

)

General and administrative expenses

 

(52,533,204

)

(88,926,531

)

(12,953,610

)

Other operating income — government subsidies

 

14,899,473

 

5,621,863

 

818,917

 

Total operating cost and expenses

 

(283,310,614

)

(241,039,307

)

(35,111,334

)

Income (loss) from operations

 

160,254,911

 

(55,169,932

)

(8,036,407

)

 

 

 

 

 

 

 

 

Interest income

 

929,446

 

1,882,685

 

274,244

 

Investment income

 

633,532

 

437,815

 

63,775

 

Other income

 

278,688

 

267,801

 

39,010

 

Total other income

 

1,841,666

 

2,588,301

 

377,029

 

Income (loss) before taxes and loss from equity in affiliates

 

162,096,577

 

(52,581,631

)

(7,659,378

)

Income tax expense

 

(49,257,419

)

(7,616,808

)

(1,109,513

)

Loss from equity in affiliates

 

(20,051,928

)

(3,126,633

)

(455,446

)

Net income (loss)

 

92,787,230

 

(63,325,072

)

(9,224,337

)

Net (income) loss attributable to non-controlling interests

 

(4,945,241

)

2,280,249

 

332,156

 

Net income (loss) attributable to ordinary shareholders

 

87,841,989

 

(61,044,823

)

(8,892,181

)

 

 

 

 

 

 

 

 

Net income (loss) per ADS:

 

 

 

 

 

 

 

Basic

 

2.63

 

(1.82

)

(0.26

)

Diluted

 

2.49

 

(1.82

)

(0.26

)

Weighted average number of ADSs used in computation:

 

 

 

 

 

 

 

Basic

 

33,402,453

 

33,622,879

 

33,622,879

 

Diluted

 

35,233,971

 

33,622,879

 

33,622,879

 

 

10


 

Jupai Holdings Limited

Unaudited Condensed Consolidated Income Statements

(In RMB, except for USD data and ADS data)

 

 

 

Six months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

 

 

2018

 

2019

 

2019

 

 

 

RMB

 

RMB

 

USD

 

Revenues

 

 

 

 

 

 

 

Third party revenues

 

130,137,315

 

180,086,252

 

26,232,520

 

Related party revenues

 

749,594,247

 

289,830,779

 

42,218,613

 

Total revenues

 

879,731,562

 

469,917,031

 

68,451,133

 

Taxes and surcharges

 

(2,949,252

)

(3,001,274

)

(437,184

)

Net revenues

 

876,782,310

 

466,915,757

 

68,013,949

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of revenues

 

(304,362,763

)

(284,401,407

)

(41,427,736

)

Selling expenses

 

(157,125,195

)

(103,450,371

)

(15,069,246

)

General and administrative expenses

 

(117,563,389

)

(151,686,377

)

(22,095,612

)

Other operating income — government subsidies

 

15,040,473

 

5,621,863

 

818,917

 

Total operating cost and expenses

 

(564,010,874

)

(533,916,292

)

(77,773,677

)

Income (loss) from operations

 

312,771,436

 

(67,000,535

)

(9,759,728

)

 

 

 

 

 

 

 

 

Interest income

 

2,075,494

 

3,352,100

 

488,288

 

Investment income

 

1,762,391

 

2,282,310

 

332,456

 

Other income

 

1,387,560

 

2,338,093

 

340,582

 

Total other income

 

5,225,445

 

7,972,503

 

1,161,326

 

Income (loss) before taxes and loss from equity in affiliates

 

317,996,881

 

(59,028,032

)

(8,598,402

)

Income tax expense

 

(88,373,667

)

(22,810,960

)

(3,322,792

)

Loss from equity in affiliates

 

(21,238,446

)

(5,122,363

)

(746,156

)

Net income (loss)

 

208,384,768

 

(86,961,355

)

(12,667,350

)

Net (income) loss attributable to non-controlling interests

 

(4,665,194

)

324,176

 

47,222

 

Net income (loss) attributable to ordinary shareholders

 

203,719,574

 

(86,637,179

)

(12,620,128

)

 

 

 

 

 

 

 

 

Net income (loss) per ADS:

 

 

 

 

 

 

 

Basic

 

6.12

 

(2.58

)

(0.38

)

Diluted

 

5.79

 

(2.58

)

(0.38

)

Weighted average number of ADSs used in computation:

 

 

 

 

 

 

 

Basic

 

33,263,317

 

33,608,973

 

33,608,973

 

Diluted

 

35,184,517

 

33,608,973

 

33,608,973

 

 

11


 

Jupai Holdings Limited

Unaudited Condensed Comprehensive Income Statements

(In RMB, except for USD data)

 

 

 

Three months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

 

 

2018

 

2019

 

2019

 

 

 

RMB

 

RMB

 

USD

 

Net income (loss)

 

92,787,230

 

(63,325,072

)

(9,224,337

)

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

Change in cumulative foreign currency translation adjustment

 

23,720,224

 

4,773,399

 

695,324

 

Other comprehensive income

 

23,720,224

 

4,773,399

 

695,324

 

Comprehensive income (loss)

 

116,507,454

 

(58,551,673

)

(8,529,013

)

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

 

4,945,241

 

(1,851,899

)

(269,760

)

Comprehensive income (loss) attributable to ordinary shareholders

 

111,562,213

 

(56,699,774

)

(8,259,253

)

 

12


 

Jupai Holdings Limited

Unaudited Condensed Comprehensive Income Statements

(In RMB, except for USD data)

 

 

 

Six months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

 

 

2018

 

2019

 

2019

 

 

 

RMB

 

RMB

 

USD

 

Net income (loss)

 

208,384,768

 

(86,961,355

)

(12,667,350

)

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

Change in cumulative foreign currency translation adjustment

 

2,301,164

 

274,663

 

40,009

 

Other comprehensive income

 

2,301,164

 

274,663

 

40,009

 

Comprehensive income (loss)

 

210,685,932

 

(86,686,692

)

(12,627,341

)

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

 

4,665,194

 

(321,568

)

(46,842

)

Comprehensive income (loss) attributable to ordinary shareholders

 

206,020,738

 

(86,365,124

)

(12,580,499

)

 

13


 

Jupai Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB, except for ADS data and percentages)

 

 

 

Three months ended

 

 

 

June 30,

 

June 30,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

Net margin attributable to ordinary shareholders

 

19.8

%

-32.8

%

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

 

26.0

%

-31.5

%

 

 

 

 

 

 

Net income (loss) attributable to ordinary shareholders

 

87,841,989

 

(61,044,823

)

Adjustment for share-based compensation (net of tax effect of nil for both three months ended June 30, 2018 and 2019)

 

6,173,219

 

2,417,224

 

Adjustment for amortization of intangible assets related to acquisition (net of tax effect of RMB1,167,708 and nil for three months ended June 30, 2018 and 2019, respectively)

 

3,503,125

 

 

Adjustment for impairment loss of investment in affiliates (net of tax effect of nil for both three months ended June 30, 2018 and 2019)

 

18,000,000

 

 

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

 

115,518,333

 

(58,627,599

)

 

 

 

 

 

 

Net income (loss) attributable to ordinary shareholders per ADS, diluted

 

2.49

 

(1.82

)

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

 

3.28

 

(1.74

)

 

 

 

 

 

 

Weighted average number of ADSs used in computation:

 

 

 

 

 

Diluted

 

35,233,971

 

33,622,879

 

 

14


 

Jupai Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB, except for ADS data and percentages)

 

 

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

Net margin attributable to ordinary shareholders

 

23.2

%

-18.6

%

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

 

27.6

%

-17.4

%

 

 

 

 

 

 

Net income (loss) attributable to ordinary shareholders

 

203,719,574

 

(86,637,179

)

Adjustment for share-based compensation (net of tax effect of nil for both six months ended June 30, 2018 and 2019)

 

13,086,098

 

4,785,264

 

Adjustment for amortization of intangible assets related to acquisition (net of tax effect of RMB2,278,517 and RMB196,316 for six months ended June 30, 2018 and 2019, respectively)

 

6,835,553

 

588,954

 

Adjustment for impairment loss of investment in affiliates (net of tax effect of nil for both six months ended June 30, 2018 and 2019)

 

18,000,000

 

 

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

 

241,641,225

 

(81,262,961

)

 

 

 

 

 

 

Net income (loss) attributable to ordinary shareholders per ADS, diluted

 

5.79

 

(2.58

)

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

 

6.87

 

(2.42

)

 

 

 

 

 

 

Weighted average number of ADSs used in computation:

 

 

 

 

 

Diluted

 

35,184,517

 

33,608,973

 

 

15