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 March 2020

 


 

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: March 16, 2020

 


 

Exhibit Index

 

Exhibit 99.1 — Press Release

 


Exhibit 99.1

 

Jupai Reports Full Year 2019 Results

 

SHANGHAI — March 13, 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 full year ended December 31, 2019.

 

FULL YEAR 2019 FINANCIAL HIGHLIGHTS

 

·                      Net revenues for the full year 2019 were RMB785.9 million (US$1112.9 million), a decrease of 40.5% from 2018.

 

(RMB ‘000, except percentages)

 

FY 2018

 

FY 2018 %

 

FY 2019

 

FY 2019 %

 

YoY Change %

 

One-time commissions

 

737,482

 

55.7

%

318,854

 

40.5

%

-56.8

%

Recurring management fees

 

435,523

 

33.0

%

338,647

 

43.1

%

-22.2

%

Recurring service fees

 

64,345

 

4.9

%

114,542

 

14.6

%

78.0

%

Other service fees

 

84,394

 

6.4

%

13,904

 

1.8

%

-83.5

%

Total net revenues

 

1,321,744

 

100.0

%

785,947

 

100.0

%

-40.5

%

 

·                      Loss from operations for the full year 2019 was RMB136.7 million (US$19.6 million), a decrease of 14.5% from 2018.

 

·                      Net loss attributable to ordinary shareholders for the full year 2019 was RMB164.7 million (US$23.7 million), a decrease of 57.5% from 2018.

 

·                      Non-GAAP2 net loss attributable to ordinary shareholders for the full year 2019 was RMB154.5 million (US$22.2 million), compared to non-GAAP net income attributable to ordinary shareholders of RMB13.0 million in 2018.

 

FULL YEAR 2019 OPERATIONAL UPDATES

 

·                      Total number of active clients3 for the full year 2019 was 2,973.

 

·                      The aggregate value of wealth management products distributed by the Company for the full year 2019 was RMB9.8 billion (US$1.4 billion), a 67.5% decrease from 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 December 31, 2019, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System, which was RMB6.9618 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, amortization of intangible assets resulted from business acquisitions, impairment loss of investment in affiliates and impairment loss of goodwill in the periods presented.

 

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.

 

1


 

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

 

 

 

Twelve months ended

 

 

 

December 31, 2018

 

December 31, 2019

 

Product type

 

(RMB in millions, except percentages)

 

Fixed income products

 

8,560

 

28

%

7,219

 

73

%

Private equity products

 

19,038

 

63

%

1,526

 

16

%

Secondary market equity fund products

 

1,129

 

4

%

291

 

3

%

Other products

 

1,546

 

5

%

791

 

8

%

All products

 

30,273

 

100

%

9,827

 

100

%

 

·                      Jupai’s coverage network as of December 31, 2019 included 51 client centers covering 43 cities, as compared to 76 client centers covering 50 cities as of December 31, 2018.

 

·                      Total assets under management4 as of December 31, 2019 were RMB41.8 billion (US$6.0 billion), a 26.3% decrease from December 31, 2018.

 

Assets under management — breakdown by product type

 

 

 

As of

 

 

 

December 31, 2018

 

December 31, 2019

 

Product type

 

(RMB in millions, except percentages)

 

Fixed income products

 

19,846

 

35

%

13,455

 

32

%

Private equity products

 

34,033

 

60

%

26,294

 

63

%

Secondary market equity fund products

 

1,658

 

3

%

929

 

2

%

Other products

 

1,215

 

2

%

1,147

 

3

%

All products

 

56,752

 

100

%

41,825

 

100

%

 

“Our bottom-line performance showed further improvement over the fourth quarter of 2019, as our cost control measures continued to take effect,” said Mr. Jianda Ni, Jupai’s chairman of the board and chief executive officer. “However, our top-line performance for this quarter remained under pressure due to industry-wide headwinds. Although we started to see certain loosening of regulatory restrictions on privately-offered funds during the quarter, demand for wealth management products stayed weak as investors remain cautious on the overall market outlook for 2020.”

 

“Looking forward, we expect the market environment to be negatively affected by the coronavirus outbreak in the first quarter. We remain confident, however, in the long-term outlook for Jupai and for the overall wealth management industry, which has been reflected in our announcement of a US$10 million share repurchase program in late February. Jupai remains dedicated to executing on our core strategies of further strengthening our cost control efforts and increasing our operating efficiency, enhancing our product portfolio with differentiated products, and optimizing our risk control system and improving project transparency. We will also continue to seek potential growth opportunities from overseas business.”

 


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


 

Ms. Min Liu, Jupai’s chief financial officer, said, “Jupai achieved another sequential decline in operating expenses in the fourth quarter of 2019, thanks to our continuous efforts in implementing cost control measures. Specifically, cost of revenues declined by 14% and G&A expenses were down by 33%. We expect to be able to further reduce costs in the coming quarters as we continue to enhance operating efficiencies.”

 

FULL YEAR 2019 FINANCIAL RESULTS

 

Net Revenues

 

Net revenues for the full year 2019 were RMB785.9 million (US$112.9 million), a 40.5% decrease from 2018, primarily due to decreases in one-time commissions, recurring management fees and other service fees.

 

·                      Net revenues from one-time commissions for the full year 2019 were RMB318.9 million (US$45.8 million), a 56.8% decrease from 2018, primarily as a result of a decrease in the aggregate value of wealth management products distributed by the Company.

 

·                      Net revenues from recurring management fees for the full year 2019 were RMB338.6 million (US$48.6 million), a 22.2% decrease from 2018, primarily due to the decrease in the value of assets under management. RMB156.9 million (US$22.0 million) and RMB61.6 million carried interest was recognized as part of Jupai’s recurring management fees for the full year 2019 and 2018, respectively.

 

·                      Net revenues from recurring service fees for the full year 2019 were RMB114.5 million (US$16.5 million), a 78.0% increase from 2018, primarily because the Company provided ongoing services to more product suppliers. The Company recognized RMB2.1 million (US$0.3 million) and RMB0.3 million variable performance fees for the full year 2019 and 2018, respectively.

 

·                      Net revenues from other service fees for the full year 2019 were RMB13.9 million (US$2.0 million), an 83.5% decrease from 2018, primarily due to a decrease in sub-advisory fees collected from other companies.

 

Operating Costs and Expenses

 

Operating costs and expenses for the full year 2019 were RMB922.6 million (US$132.5 million), a decrease of 37.7% from 2018.

 

·                      Cost of revenues for the full year 2019 was RMB481.7 million (US$69.2 million), a decrease of 29.6% from 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.

 

·                      Selling expenses for the full year 2019 were RMB206.8 million (US$29.7 million), a decrease of 31.8% from 2018, primarily due to the decrease in marketing and promotion expenses as a result of cost control.

 

·                      General and administrative expenses for the full year 2019 were RMB265.5 million (US$38.1 million), a decrease of 3.4% from 2018.

 

·                      Other operating income (government subsidies) received by the Company for the full year 2019 was RMB31.4 million (US$4.5 million), a decrease of 35.5% from 2018. Government subsidies were recorded when received, with their availability and amount dependent upon government policies.

 

3


 

Operating margin for the full year 2019 was -17.4%, compared to -12.1% in 2018.

 

Income tax expenses for the full year 2019 were RMB52.9 million (US$7.6 million), a 59.2% decrease from 2018, primarily due to a decrease in taxable income.

 

Net Income

 

·                      Net Income

 

·                      Net loss attributable to ordinary shareholders for the full year 2019 was RMB164.7 million (US$23.7 million), a 57.5% decrease from 2018.

 

·                      Net margin attributable to ordinary shareholders for the full year 2019 was -21.0%, compared to -29.3% in 2018.

 

·                      Net loss attributable to ordinary shareholders per basic and diluted American depositary share (“ADS”) for the full year 2019 was RMB4.90 (US$0.70) and RMB4.90 (US$0.70), respectively, as compared to RMB11.60 and RMB11.60, respectively, in 2018.

 

·                      Non-GAAP Net Income

 

·                      Non-GAAP net loss attributable to ordinary shareholders for the full year 2019 was RMB154.5 million (US$22.2 million), as compared to non-GAAP net income attributable to ordinary shareholders of RMB13.0 million in 2018.

 

·                      Non-GAAP net margin attributable to ordinary shareholders for the full year 2019 was -19.7%, as compared to 1.0% in 2018.

 

·                      Non-GAAP net loss attributable to ordinary shareholders per diluted ADS for the full year 2019 was RMB4.60 (US$0.66), as compared to non-GAAP net income attributable to ordinary shareholders per diluted ADS of RMB0.37 in 2018.

 

Balance Sheet and Cash Flow

 

As of December 31, 2019, the Company had RMB712.3 million (US$102.3 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 for the full year 2019 was RMB224.6 million (US$32.3 million).

 

Net cash used in investing activities for the full year 2019 was RMB365.7 million (US$52.5 million).

 

Net cash provided by financing activities for the full year 2019 was RMB29.6 thousand (US$4.3 thousand).

 

CONFERENCE CALL

 

Jupai’s management will host an earnings conference call on March 13, 2020 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time).

 

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:

7177755

 

 

4


 

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 March 21, 2020:

 

U.S./International:

+1-855-452-5696

 

Hong Kong:

800-963-117

 

Mainland China:

400-632-2162

 

Singapore:

800-616-2305

 

Passcode:

7177755

 

 

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, impairment loss of investment in affiliates and impairment loss of goodwill in the periods presented. 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, amortization of intangible assets related to acquisition, impairment loss of investment in affiliates and impairment loss of goodwill in the periods presented, 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, impairment loss of investment in affiliates and impairment loss of goodwill in the periods presented. The Company utilized the non-GAAP financial results to make financial results comparable period to period and to better understand its historical business operations.

 

5


 

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.

 

6


 

Contacts:

Jupai Holdings Limited

 

Harry He

Director of Investor Relations

Jupai Holdings Limited

Phone: +86 (21) 5226 5819

Email: ir@jpinvestment.cn

 

Philip Lisio

The Foote Group

Phone: +86 (10) 8429 9544

Email: Jupai-IR@thefootegroup.com

 

— 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,

 

December 31,

 

 

 

2018

 

2019

 

2019

 

 

 

RMB

 

RMB

 

USD

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

1,298,565,042

 

711,205,698

 

102,158,306

 

Restricted cash

 

4,000,000

 

1,100,000

 

158,005

 

Short-term investments

 

4,723,612

 

 

 

Accounts receivable

 

39,633,035

 

 

 

Other receivables

 

20,493,145

 

14,125,535

 

2,029,006

 

Amounts due from related parties

 

199,331,694

 

95,193,003

 

13,673,619

 

Other current assets

 

15,320,791

 

4,984,541

 

715,985

 

Total current assets

 

1,582,067,319

 

826,608,777

 

118,734,921

 

Long-term investments

 

58,950,000

 

228,950,000

 

32,886,610

 

Investment in affiliates

 

67,262,431

 

107,541,000

 

15,447,298

 

Amounts due from related parties — non-current

 

48,626,353

 

229,117,743

 

32,910,705

 

Property and equipment, net

 

36,267,042

 

27,834,760

 

3,998,213

 

Intangible assets, net

 

58,124,608

 

38,250,479

 

5,494,338

 

Goodwill

 

297,031

 

 

 

Other non-current assets

 

27,914,021

 

17,886,020

 

2,569,166

 

Right-of-use assets

 

 

68,950,101

 

9,904,062

 

Deferred tax assets

 

100,985,228

 

4,608,063

 

661,907

 

Total Assets

 

1,980,494,033

 

1,549,746,943

 

222,607,220

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accrued payroll and welfare expenses

 

116,653,658

 

58,318,063

 

8,376,866

 

Income tax payable

 

227,537,993

 

82,800,208

 

11,893,506

 

Other tax payable

 

43,009,523

 

695,081

 

99,842

 

Amounts due to related parties — current

 

31,105,111

 

19,439,664

 

2,792,333

 

Deferred revenue from related parties

 

111,720,785

 

42,053,959

 

6,040,673

 

Deferred revenue

 

18,949,097

 

35,674,503

 

5,124,322

 

Other current liabilities

 

39,929,945

 

78,201,072

 

11,232,881

 

Total current liabilities

 

588,906,112

 

317,182,550

 

45,560,423

 

Deferred revenue — non-current from related parties

 

22,096,306

 

4,917,845

 

706,404

 

Deferred revenue — non-current

 

2,144,593

 

311,651

 

44,766

 

Operating Lease Liabilities — non-current

 

 

28,518,789

 

4,096,468

 

Deferred tax liabilities

 

198,187

 

 

 

Total Liabilities

 

613,345,198

 

350,930,835

 

50,408,061

 

Equity

 

1,367,148,835

 

1,198,816,108

 

172,199,159

 

Total Liabilities and Total Shareholders’ Equity

 

1,980,494,033

 

1,549,746,943

 

222,607,220

 

 

8


 

Jupai Holdings Limited

Unaudited Condensed Consolidated Income Statements

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

 

 

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

 

2018

 

2019

 

2019

 

 

 

RMB

 

RMB

 

USD

 

Revenues

 

 

 

 

 

 

 

Third party revenues

 

335,246,612

 

387,870,253

 

55,714,076

 

Related party revenues

 

990,820,793

 

402,889,899

 

57,871,513

 

Total revenues

 

1,326,067,405

 

790,760,152

 

113,585,589

 

Taxes and surcharges

 

(4,323,742

)

(4,812,940

)

(691,336

)

Net revenues

 

1,321,743,663

 

785,947,212

 

112,894,253

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of revenues

 

(684,558,659

)

(481,746,067

)

(69,198,493

)

Selling expenses

 

(303,170,575

)

(206,777,405

)

(29,701,716

)

General and administrative expenses

 

(274,782,664

)

(265,527,496

)

(38,140,638

)

Impairment loss of goodwill

 

(267,917,575

)

 

 

Other operating income — government subsidies

 

48,742,897

 

31,429,802

 

4,514,609

 

Total operating cost and expenses

 

(1,481,686,576

)

(922,621,166

)

(132,526,238

)

Loss from operations

 

(159,942,913

)

(136,673,954

)

(19,631,985

)

 

 

 

 

 

 

 

 

Gain from deconsolidation of subsidiaries

 

561,528

 

 

 

Interest income

 

3,990,096

 

6,136,600

 

881,467

 

Investment (loss) income

 

(292,384

)

12,627,142

 

1,813,775

 

Other income

 

4,227,896

 

3,409,000

 

489,673

 

Total other income

 

8,487,136

 

22,172,742

 

3,184,915

 

Loss before taxes and loss from equity in affiliates

 

(151,455,777

)

(114,501,212

)

(16,447,070

)

Income tax expense

 

(129,855,367

)

(52,944,639

)

(7,605,021

)

Loss from equity in affiliates

 

(113,486,155

)

(5,015,063

)

(720,369

)

Net loss

 

(394,797,299

)

(172,460,914

)

(24,772,460

)

Net loss attributable to non-controlling interests

 

7,053,281

 

7,774,839

 

1,116,786

 

Net loss attributable to ordinary shareholders

 

(387,744,018

)

(164,686,075

)

(23,655,674

)

 

 

 

 

 

 

 

 

Net loss per ADS:

 

 

 

 

 

 

 

Basic

 

(11.60

)

(4.90

)

(0.70

)

Diluted

 

(11.60

)

(4.90

)

(0.70

)

Weighted average number of ADSs used in computation:

 

 

 

 

 

 

 

Basic

 

33,413,485

 

33,615,983

 

33,615,983

 

Diluted

 

33,413,485

 

33,615,983

 

33,615,983

 

 

9


 

Jupai Holdings Limited

Unaudited Condensed Comprehensive Income Statements

(In RMB, except for USD data)

 

 

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

 

2018

 

2019

 

2019

 

 

 

RMB

 

RMB

 

USD

 

Net loss

 

(394,797,299

)

(172,460,914

)

(24,772,460

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

Change in cumulative foreign currency translation adjustment

 

12,501,586

 

(3,245,903

)

(466,245

)

Other comprehensive income

 

12,501,586

 

(3,245,903

)

(466,245

)

Comprehensive loss

 

(382,295,713

)

(175,706,817

)

(25,238,705

)

Less: Comprehensive loss attributable to non-controlling interests

 

(6,934,658

)

(7,748,689

)

(1,113,029

)

Comprehensive loss attributable to ordinary shareholders

 

(375,361,055

)

(167,958,128

)

(24,125,676

)

 

10


 

Jupai Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB, except for ADS data and percentages)

 

 

 

Twelve months ended

 

 

 

December 31,

 

December 31,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

Net margin attributable to ordinary shareholders

 

-29.3

%

-21.0

%

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

 

1.0

%

-19.7

%

 

 

 

 

 

 

Net loss attributable to ordinary shareholders

 

(387,744,018

)

(164,686,075

)

Adjustment for share-based compensation (net of tax effect of nil for both years ended December 31, 2018 and 2019)

 

18,108,942

 

9,583,596

 

Adjustment for amortization of intangible assets related to acquisition (net of tax effect of RMB4,642,486 and RMB196,316 for years ended December 31, 2018 and 2019, respectively)

 

13,927,456

 

588,954

 

Adjustment for impairment loss of investment in affiliates (net of tax effect of nil for both years ended December 31, 2018 and 2019)

 

100,756,194

 

 

Adjustment for impairment loss of goodwill (net of tax effect of nil for both years ended December 31, 2018 and 2019)

 

267,917,575

 

 

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

 

12,966,149

 

(154,513,525

)

 

 

 

 

 

 

Net loss attributable to ordinary shareholders per ADS, diluted

 

(11.60

)

(4.90

)

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

 

0.37

 

(4.60

)

 

 

 

 

 

 

Weighted average number of ADSs used in computation:

 

 

 

 

 

Diluted

 

35,035,842

 

33,615,983

 

 

11