Jupai Holdings Limited (NYSE:JP) Q2 2019 Earnings Conference Call - Final Transcript

Aug 05, 2019 • 08:00 am ET

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Jupai Holdings Limited (NYSE:JP) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by for Jupai's Second Quarter 2019 Earnings Conference Call. At this time all participants are in listen-only mode. After managements prepared remarks there will be a question-and-answer session. Please note, today's conference call is being recorded. If you have any objections you may disconnect at this time.

I'd now like to turn the meeting over to your host for today's conference, Mr. Harry He, Jupai's Investor Relations Director.

Executive
Harry He

Hello everyone, and welcome to Jupai's earnings conference call for the second quarter ended June 30, 2019. Leading the call today is Mr. Jianda Ni, our Chairman and CEO, who will review the highlights for the second quarter of 2019. I will then discuss our financial results. We will then open the call to questions, at which time, our CFO, Ms. Min Liu, will also be available.

Before we continue, I refer you to our safe harbor statement in the earnings press release, which applies to this call as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains reconciliation of non-GAAP measures to the most directly comparable GAAP measures.

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in Renminbi.

I will now turn the call over to Mr. Jianda Ni, our Chairman and CEO, and I will interpret his remarks for you.

Executive
Jianda Ni

[Foreign Speech]

Executive
Harry He

Thank you, and welcome everyone to today's conference call.

Executive
Jianda Ni

[Foreign Speech]

Executive
Harry He

Although the second quarter of 2019 remained challenging for Jupai, we saw initial signs of stabilization in our core business.

Executive
Jianda Ni

[Foreign Speech]

Executive
Harry He

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.

Executive
Jianda Ni

[Foreign Speech]

Executive
Harry He

Jupai will continue to execute our three strategies to optimize our business and enhance profitability.

Executive
Jianda Ni

[Foreign Speech]

Executive
Harry He

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 the supply chain management products.

Executive
Jianda Ni

[Foreign Speech]

Executive
Harry He

Secondly, we will enhance our risk control system to further build investor confidence.

Executive
Jianda Ni

[Foreign Speech]

Executive
Harry He

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.

Executive
Jianda Ni

[Foreign Speech]

Executive
Harry He

I will now turn the call over to Mr. Harry He, our Investor Relations Director, who'll go through the financial in more detail. Thank you.

Thank you, Ni Jian. 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