SHANGHAI, November 19, 2015 /PRNewswire/ -- Jupai Holdings Limited ("Jupai" or the "Company") (NYSE: JP), a leading third-party wealth management service provider focusing on distributing wealth management products and providing quality product advisory services to high-net-worth individuals in China, today announced its unaudited financial results for the fiscal quarter and nine months ended September 30, 2015.
THIRD QUARTER AND FIRST NINE MONTHS 2015 FINANCIAL HIGHLIGHTS
($'000, except percentages) |
Q3 2014 |
Q3 2014 |
Q3 2015 |
Q3 2015 |
YoY Change |
|||||||||
One-time commissions |
8,843 |
87.0% |
17,164 |
55.9% |
94.1% |
|||||||||
Recurring management fee |
821 |
8.1% |
4,929 |
16.1% |
500.6% |
|||||||||
Recurring service fees |
497 |
4.9% |
8,606 |
28.0% |
1632.1% |
|||||||||
Total net revenues |
10,161 |
100.0% |
30,699 |
100.0% |
202.1% |
|||||||||
($ '000, except percentages) |
Nine Months |
Nine Months |
Nine Months |
Nine Months % |
YoY Change |
|||||||||
One-time commissions |
25,458 |
93.3% |
36,749 |
59.8% |
44.3% |
|||||||||
Recurring management fee |
1,101 |
4.0% |
11,433 |
18.6% |
938.4% |
|||||||||
Recurring service fees |
750 |
2.7% |
13,255 |
21.6% |
1667.0% |
|||||||||
Total net revenues |
27,309 |
100.0% |
61,437 |
100.0% |
125.0% |
|||||||||
1. Jupai's Non-GAAP financial measures are its corresponding GAAP financial measures as adjusted by excluding the effects of all forms of share-based compensation and amortization of intangible assets resulting from business acquisitions. |
THIRD QUARTER AND FIRST NINE MONTHS 2015 OPERATIONAL UPDATES
Three months ended |
|||||||||
Product type |
September 30, 2014 |
September 30, 2015 |
|||||||
(USD in millions, except percentages) |
|||||||||
Fixed income products |
520 |
76% |
815 |
64% |
|||||
Private equity products |
15 |
2% |
314 |
25% |
|||||
Secondary market equity fund products |
147 |
22% |
69 |
5% |
|||||
Other products |
- |
-- |
75 |
6% |
|||||
All products |
682 |
100% |
1,273 |
100% |
|||||
2. "Active clients" for a given period refers to clients who purchase wealth management products distributed by Jupai at least once during that given period. |
3. "assets under management" by Jupai refers to the amount of capital contributions made by the investors to the fund without adjustment for any gain or loss from investment. |
"We are pleased to announce solid results for the third quarter of 2015, with revenue growth of over 200% year-over-year," said Mr. Jianda Ni, Jupai's co-chairman of the board and chief executive officer. "Jupai has benefited from volatilities in China's stock market since June this year, as many of China's high-net-worth individuals shifted their investment focus from equities to fixed-income products. Backed by our expertise in the real estate industry, Jupai is a leader in offering clients a wide range of fixed-income products and equity investment products based on real estate projects. In addition, we are constantly improving Jupai's in-house development capabilities in order to offer investors a diversified range of financial products, including fixed income, private equity and alternative investment products."
Mr. Ni continued, "Leveraging our strategic relationship with E-House, our largest shareholder, we continue to benefit from significant operational synergies including rapidly expanding business relationships with leading real estate developers. We look forward to providing innovative one-stop solutions to more leading real estate developers in China through leveraging expertise and resources from both companies."
Mr. Tianxiang Hu, Juapi's co-chairman and executive chairman of the board commented, "As China's internet penetration rate continues to rise, we believe that internet finance will become an important driver of Jupai's future business development. We will continue to closely monitor the rapid development of China's internet finance industry and identify suitable investment targets to further broaden Jupai's presence in this emerging sector."
Ms. Min Liu, Jupai's chief financial officer, said, "In the third quarter, Jupai's business continued to experience rapid growth. Our revenue and net income grew substantially year-over-year, bolstered by our successful initial public offering on the New York Stock Exchange, which further strengthened Jupai's brand image and company profile among Chinese investors."
THIRD QUARTER AND FIRST NINE MONTHS 2015 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2015 were $30.7 million, a 202.1% increase from $10.2 million for the corresponding period in 2014, primarily due to increases in one-time commission. Net revenues were $61.4 million for the first nine months of 2015, an increase of 125.0% from $27.3 million for the same period in 2014.
Operating costs and expenses
Operating costs and expenses for the third quarter of 2015 were $20.0 million, an increase of 219.4% from $6.3 million for the corresponding period in 2014. For the first nine months of 2015, operating costs and expenses were $37.1 million, an increase of 161.0% from $14.2 million for the same period in 2014.
Operating margin for the third quarter of 2015 was 34.9%, compared to 38.4% for the corresponding period in 2014. The decrease was mainly because of increased compensation cost and marketing expenses compared with the corresponding period in 2014. For the first nine months of 2015, operating margin was 39.6%, compared to 48.0% for the corresponding period in 2014.
Income tax expenses for the third quarter of 2015 were $3.1 million, a 132.0% increase from $1.3 million for the corresponding period in 2014. The increase was primarily due to an increase in taxable income. For the first nine months of 2015, income tax expenses were $7.3 million, an increase of 89.7% from $3.8 million for the same period in 2014.
Net Income
Balance Sheet and Cash Flow
As of September 30, 2015, the Company had $109.5 million in cash and cash equivalents, compared to $31.6 million as of December 31, 2014.
Net cash provided by operating activities during the third quarter of 2015 was $22.8 million.
Net cash used in investing activities during the third quarter of 2015 was $2.6 million.
Net cash provided by financing activities during the third quarter of 2015 was $46.2 million.
Business Outlook
The Company estimates that its revenues for the fourth quarter of 2015 will be in the range of $30 million to $32 million, an increase of 156.4% to 173.5% compared to the same quarter in 2014. This forecast reflects the Company's current and preliminary view, which is subject to change.
CONFERENCE CALL
Jupai's management will host an earnings conference call on November 19, 2015 at 7 a.m. U.S. Eastern Time (8 p.m. Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
U.S./International: |
+1-855-298-3404 |
Hong Kong: |
+852-5808-3202 |
Mainland China: |
400-120-0539 |
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is: 1981317
A replay of the conference call may be accessed by phone at the following numbers until, November 27, 2015:
U.S./International: |
+1-866-846-0868 |
Hong Kong: |
800-966-697 |
Mainland China: |
400-184-2240 |
Passcode: |
1981317 |
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, non-GAAP income per diluted ADS and non-GAAP net margin 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 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.
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; the result of the integration of E-House Capital into the Company; 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 Holdings Limited
Michelle Yuan
Deputy CFO & Director of Investor Relations
Jupai Holdings Limited
Phone: +86 (21) 6859 5055
Email: michelle.yuan@jpinvestment.cn
Philip Lisio
The Foote Group
Phone: +86 (21) 6230 5097
Email: Jupai-IR@thefootegroup.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Jupai Holdings Limited Unaudited Condensed Consolidated Balance Sheets (In U.S. dollars) |
||||||||
As of |
||||||||
December 31, 2014 |
September 30, 2015 |
|||||||
$ |
$ |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
31,557,233 |
109,453,061 |
||||||
Short-term investments |
10,661,372 |
10,163,843 |
||||||
Short-term entrusted investments |
2,215,083 |
1,096,107 |
||||||
Accounts receivable |
793,037 |
1,693,471 |
||||||
Other receivables |
2,121,264 |
5,159,533 |
||||||
Amounts due from related parties |
2,389,925 |
7,034,960 |
||||||
Customer borrowings |
549,856 |
- |
||||||
Deferred tax assets -- current |
2,595,112 |
2,949,962 |
||||||
Other current assets |
656,838 |
1,173,066 |
||||||
Total current assets |
53,539,720 |
138,724,003 |
||||||
Long-term investments |
8,727,495 |
8,454,103 |
||||||
Long-term entrusted investments |
1,068,496 |
- |
||||||
Investment in affiliates |
2,284,687 |
11,386,360 |
||||||
Property and equipment, net |
1,359,615 |
2,207,084 |
||||||
Intangible assets |
- |
9,125,064 |
||||||
Goodwill |
- |
38,733,807 |
||||||
Long-term prepayment |
212,453 |
- |
||||||
Deferred tax assets -- non-current |
121,397 |
116,774 |
||||||
Total Assets |
67,313,863 |
208,747,195 |
||||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Accrued payroll and welfare expenses |
2,247,414 |
10,386,562 |
||||||
Income tax payable |
4,800,181 |
7,446,591 |
||||||
Other tax payable |
1,596,511 |
3,711,555 |
||||||
Dividend payable |
- |
1,179,004 |
||||||
Deferred revenue from related parties |
5,287,903 |
7,871,141 |
||||||
Deferred revenues |
3,462,149 |
7,642,292 |
||||||
Other current liabilities |
2,070,081 |
1,710,304 |
||||||
Total current liabilities |
19,464,239 |
39,947,449 |
||||||
Deferred revenue -- non-current from related parties |
131,855 |
2,440,501 |
||||||
Deferred revenue -- non-current |
353,739 |
342,904 |
||||||
Non-current uncertain tax position liabilities |
785,372 |
822,255 |
||||||
Deferred tax liabilities -- non-current |
- |
2,281,266 |
||||||
Total Liabilities |
20,735,205 |
45,834,375 |
||||||
Mezzanine Equity |
38,294,634 |
- |
||||||
Equity |
8,284,024 |
162,912,820 |
||||||
Total Liabilities, Mezzanine Equity and Total Shareholders' Equity |
67,313,863 |
208,747,195 |
||||||
Jupai Holdings Limited |
||||||||||||
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
$ |
$ |
$ |
$ |
|||||||||
Revenues |
||||||||||||
Third party revenues |
9,546,454 |
18,313,225 |
26,485,226 |
29,928,228 |
||||||||
Related party revenues |
647,284 |
12,667,588 |
928,828 |
31,999,514 |
||||||||
Total revenues |
10,193,738 |
30,980,813 |
27,414,054 |
61,927,742 |
||||||||
Business taxes and related surcharges |
(32,420) |
(281,631) |
(105,373) |
(490,255) |
||||||||
Net revenues |
10,161,318 |
30,699,182 |
27,308,681 |
61,437,487 |
||||||||
Operating costs and expenses: |
||||||||||||
Cost of revenues |
(3,404,724) |
(13,669,545) |
(7,763,397) |
(22,450,720) |
||||||||
Selling expenses |
(1,562,086) |
(3,674,043) |
(3,809,179) |
(7,728,987) |
||||||||
General and administrative expenses |
(1,495,433) |
(4,553,543) |
(4,250,282) |
(9,348,957) |
||||||||
Other operating income -- government subsidy |
200,615 |
1,897,464 |
1,613,496 |
2,436,124 |
||||||||
Total operating cost and expenses |
(6,261,628) |
(19,999,667) |
(14,209,362) |
(37,092,540) |
||||||||
Income from operations |
3,899,690 |
10,699,515 |
13,099,319 |
24,344,947 |
||||||||
Gain from deconsolidation of subsidiaries |
102,089 |
- |
102,089 |
- |
||||||||
Interest income |
135,279 |
18,132 |
151,393 |
376,341 |
||||||||
Investment income |
790,487 |
349,664 |
1,395,942 |
2,248,193 |
||||||||
Interest expense |
(41) |
- |
(14,961) |
- |
||||||||
Other income |
- |
410,452 |
- |
410,452 |
||||||||
Total other income |
1,027,814 |
778,248 |
1,634,463 |
3,034,986 |
||||||||
Income before taxes and loss from equity in affiliates |
4,927,504 |
11,477,763 |
14,733,782 |
27,379,933 |
||||||||
Income tax expense |
(1,341,605) |
(3,111,934) |
(3,845,516) |
(7,294,289) |
||||||||
Income(loss)from equity in affiliates |
78,015 |
(362,800) |
78,015 |
25,353 |
||||||||
Net income |
3,663,914 |
8,003,029 |
10,966,281 |
20,110,997 |
||||||||
Net income attributable to non-controlling interests |
42,858 |
(516,175) |
(2,442) |
(1,692,794) |
||||||||
Net income attributable to Jupai shareholders |
3,706,772 |
7,486,854 |
10,963,839 |
18,418,203 |
||||||||
Deemed dividend on Series B convertible redeemable preferred shares |
- |
- |
(4,204,901) |
- |
||||||||
Net income attributable to ordinary shareholders |
3,706,772 |
7,486,854 |
6,758,938 |
18,418,203 |
||||||||
Net income per ADS: |
||||||||||||
Basic |
0.19 |
0.27 |
0.37 |
0.83 |
||||||||
Diluted |
0.19 |
0.26 |
0.37 |
0.79 |
||||||||
Weighted average number of shares used in computation: |
||||||||||||
Basic |
74,163,320 |
152,696,155 |
85,756,702 |
92,063,691 |
||||||||
Diluted |
117,135,207 |
159,938,813 |
110,415,777 |
97,081,779 |
||||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ADS represents six ordinary shares. |
||||||||||||
Jupai Holdings Limited Unaudited Condensed Comprehensive Income Statements (In U.S. dollars) |
||||||||||
Three months ended |
Nine months ended |
|||||||||
2014 |
2015 |
2014 |
2015 |
|||||||
$ |
$ |
$ |
$ |
|||||||
Net income |
3,663,914 |
8,003,029 |
10,966,281 |
20,110,997 |
||||||
Other comprehensive income, net of tax: |
||||||||||
Change in fair value of available-for-sale investment |
(18,175) |
64,627 |
147,711 |
298,220 |
||||||
Disposal of available-for-sale investment |
- |
(4,917) |
- |
(48,205) |
||||||
Change in cumulative foreign currency translation adjustment |
88,653 |
(2,591,094) |
(129,949) |
(2,744,895) |
||||||
Other comprehensive income(loss) |
70,478 |
(2,531,384) |
17,762 |
(2,494,880) |
||||||
Comprehensive income |
3,734,392 |
5,471,645 |
10,984,043 |
17,616,117 |
||||||
Less: Comprehensive income(loss) attributable to non-controlling |
(19,388) |
443,631 |
25,165 |
1,611,401 |
||||||
Comprehensive income attributable to Jupai shareholders |
3,753,780 |
5,028,014 |
10,958,878 |
16,004,716 |
||||||
Jupai Holdings Limited Reconciliation of GAAP to Non-GAAP Results |
|||||||||
Three months ended |
Nine months ended |
||||||||
2014 |
2015 |
2014 |
2015 |
||||||
$ |
$ |
$ |
$ |
||||||
Net margin |
36.5% |
24.4% |
24.8% |
30.0% |
|||||
Adjusted net margin (non-GAAP)* |
38.9% |
27.7% |
25.7% |
33.1% |
|||||
Net income |
3,706,772 |
7,486,854 |
6,758,938 |
18,418,203 |
|||||
Adjustment for share-based compensation |
249,378 |
597,524 |
249,378 |
1,491,057 |
|||||
Adjustment for amortization of intangible assets related to |
- |
433,152 |
- |
433,152 |
|||||
Adjusted net income attributable to ordinary |
3,956,150 |
8,517,530 |
7,008,316 |
20,342,412 |
|||||
Net income attributable to ordinary shares per ADS, |
0.19 |
0.26 |
0.37 |
0.79 |
|||||
Adjusted net income attributable to ordinary shares per ADS, |
0.21 |
0.30 |
0.38 |
0.87 |
|||||
Weighted average number of shares used in computation: |
|||||||||
Diluted |
117,135,207 |
159,938,813 |
110,415,777 |
97,081,779 |
|||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jupai-reports-third-quarter-2015-results-300181051.html