Yintech Investment Holdings Limited (NASDAQ:YIN) Q2 2019 Earnings Conference Call - Final Transcript

Aug 30, 2019 • 08:00 am ET


Yintech Investment Holdings Limited (NASDAQ:YIN) Q2 2019 Earnings Conference Call - Final Transcript


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Hello, and welcome to the Q2 2019 Yintech Investment Holdings Limited Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Yvonne Young. Please go ahead, ma'am.

Yvonne Young

Thank you, operator. Hello everyone and welcome to Yintech's second quarter 2019 earnings conference call. Our earnings release was released earlier today and is now available on our IR website.

On the call today from Yintech are Mr. Wenbin Chen, Chairman and CEO; Mr. Raphael Qian, CFO; and myself, Investor Relations Director. Mr. Chen will review business operations and company highlights, followed by Raphael Qian, who will go over the financials and the guidance. We'll all be available to answer your questions during the Q&A session that follows. Questions can be asked in English or Chinese. If you ask your question in Chinese, please translate into English yourself afterwards, or I may have to do the translation.

Before beginning, we would like to remind you that discussions during this call contains forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties and factors that may cause actual results to differ materially from those contained in any such statements. Further information regarding potential risks, uncertainties or factors is included in Yintech's filings with the US Securities and Exchange Commission. Yintech does not undertake any obligation to update any forward-looking statement, except as required under the applicable law.

During the call today, we will be referring to several non-GAAP financial measures as supplemental measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the US GAAP. For information about these non-GAAP measures and reconciliation to GAAP measures, please refer to our earnings press release.

I'll turn the call over to Mr. Wenbin Chen. Mr. Chen will give his remarks in Mandarin. I would translate for him. Mr. Chen. Go ahead.

Wenbin Chen

[Foreign Speech]

Thank you, Yvonne, and thank you to everyone, for joining in today's conference call. In the second quarter, we remain focused on strategic priorities of growing our core business and executing with excellence. This, combined with corporate client engagement led to the strongest quarterly financial and business growth for our core business. Since the fourth quarter of 2017, despite the serious headwinds we faced in the quarter, including a challenging mix of geopolitical economic dynamics, Asia [Phonetic] market volatility and weaker than expected investor conference amid the unsettled US-China trade tensions.

Our net commissions and fees generated from five core business. Under commodities and securities services reached RMB309 million representing an increase of 41.8% year-over-year and 25.4% quarter-over-quarter. Revenues from commissions, interest income and other revenues were RMB329 million, a 21.9% higher than our high end guidance. Trading losses were RMB40 million, 42.9% to 60% lower than our -- higher than our previous guidance.

[Foreign Speech]

In the second quarter