Jupai Holdings Limited (NYSE:JP) Q1 2020 Earnings Conference Call - Final Transcript

May 28, 2020 • 08:00 am ET

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Jupai Holdings Limited (NYSE:JP) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by for Jupai Holdings Limited First Quarter 2020 Earnings Conference Call. [Operator Instructions]

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

Executive
Harry He

Thank you, operator. Hello, everyone, and welcome to Jupai's earnings conference call for the first quarter ended March 31, 2020. Leading the call today is Mr. Jianda Ni, our Chairman and CEO, who will review the highlights for the first quarter of 2020. 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 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 a 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]

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

[Foreign Speech]

Our cost control measures helped to drive improved bottom line results compared to the first quarter of 2019 even as our top-line performance remained under pressure due to the COVID-19 outbreak.

[Foreign Speech]

We remain confident for the future prospects for Jupai and China's wealth management industry, which has been reflected in the $10 million share repurchase program we announced in late February 2020.

[Foreign Speech]

We will continue to focus on our core strategies, improving our cost controls and increasing operating efficiencies, enhancing our product portfolio, optimizing our risk control system, improving project transparency and seeking potential overseas growth opportunities.

[Foreign Speech]

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

Executive
Harry He

Thank you, Ni. Reflecting our continuous efforts to streamline our costs, Jupai achieved another sequential reduction in operating expenses in the first quarter of 2020. Our total operating costs and expenses declined by 35% and cost of revenue were down by 32%. We expect to continue improving our bottom line in the quarters ahead as we further enhance operating efficiencies.

Now I will walk you through our financial highlights for the first quarter of 2020. Net revenues for the first quarter of 2020 was RMB96.6 million, a 65.6% decrease from the corresponding period in 2019, primarily due to decreases in one-time commissions, recurring management fees and other service fees. Net revenues from one-time commissions for the first quarter of 2020 were RMB39.5 million, a 32.6% decrease from the corresponding period in 2019, primarily as a result of a decrease in aggregate value of wealth management products distributed by the company.