Yintech Investment Holdings Limited (NASDAQ:YIN) Q3 2019 Earnings Conference Call - Final Transcript
Dec 02, 2019 • 08:00 am ET
historical high of RMB501.2 million, an increase of 87.2% year-over-year and 73.4% quarter-over-quarter, mainly driven by strong demand for our core products, its 5% higher than our adjusted high-end guidance of RMB477 million.
Revenues generated from net commissions and fees from our core business, interest income and other revenue reached RMB418 million, up 90.6% year-over-year and 45.8% on a sequential basis and is 4.3% higher than our adjusted high-end guidance of RMB416 million.
While sustaining our incremental growth, our core business continued to grow our assets, enhanced our efficiency and ultimately drive our earnings per share growth, as we look to create long-term shareholder value. To support this outcome, we actively deployed capital, we invested for organic growth across our product upgrade, recruiting technology and return capital to shareholders through share repurchases.
In the third quarter, we delivered over RMB100 million in net income, which was translated to diluted earnings per ADS of RMB1.3 (sic) [RMB1.30], the first time of returning to profitability attributable to our core business growth, since two years ago.
Now I would like to elaborate increased details of the progress we made in our core business breaking down by business segments and provide updates on our technological advancements, further innovation and R&D progress as well as our organizational structural adjustments and how they support the needs of our evolving business initiatives in the face of the new competition environment.
Firstly, our commodities services, as we expected in the second quarter's earnings call, since the beginning of the second quarter of this year, the spot gold price has continued to rise steadily. At the end of August, the price of AUTD reached RMB369 per gram, an increase of over 30% from the low point in mid-April, the highest in nearly seven years.
Beginning in the second quarter, we anticipated that the current growth of full [Phonetic] market in gold may continue in the short- to medium-term. As a result, the company has increased the market analysis of expert consultants and investor education for gold products and has guided our clients to take the advantage of the favorable market opportunity to obtain asset [Phonetic] appreciation. Since the second quarter, our trading volume and customer equity have increased dramatically, and trading activity of both -- from both new and existing clients has increased significantly, especially in the third quarter. The trading volume peaks in recent years. In the third quarter, we're adding nearly 4,000 new accounts. Active accounts nearly doubled. Our total customer equity increased by 65% from the previous quarter.
Better serving our customers, maximizing customer value and helping customers achieve better relative returns are always our strategic goals. To this end, we'll adjust the focus of our product line in different time period according to market conditions, and result, our allocation will also be shifted accordingly. In the third quarter, the company's relatively stable development in the futures commodity business is also an important driving force for the company's