Puyi Inc (NASDAQ:PUYI) Q4 2020 Earnings Conference Call - Final Transcript

Sep 28, 2020 • 09:00 pm ET


Puyi Inc (NASDAQ:PUYI) Q4 2020 Earnings Conference Call - Final Transcript


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Ren Yong

the I Financial Planner, an intelligent business platform, relying on our financial technology. I Financial Planner provides the clients with client data management, account transaction management and asset dynamic management service. At the same time, it provides one-stop business management tools such as investor preference analysis, asset allocation analysis, market information interpretation and financial product deconstruction. We have made full use of our accumulated big data with artificial intelligence technology to launch professional, individual and comprehensive family financial wealth management planning service, which enable us to assist our seed clients to meet their wealth management needs at different levels.

[Foreign Speech] We also upgraded our online investor education service. We set up Puyi Business School and Puyi Academy platforms to provide online streaming for seed clients and investors respectively. Both platforms are designed to cultivate investors' scientific thinking of logical asset allocation.

[Foreign Speech] For the construction of information technology platforms, our Puyi Fund has over 960,000 registered clients as of June 30, 2020. For the fiscal year 2020, the number of registered clients of Puyi Fund increased by 290,000 withstanding an increase of 169.2% compared to the number of newly registered clients of the fiscal year 2019. [Indecipherable] is becoming more and more popular young middle class population. We are also expanding our client base for online channels using public raised fund products as the client-specific entrance point.

[Foreign Speech] In addition to the build-up of online platforms, we are also optimizing our offline channels. During the fiscal year 2020, we classified our seed clients into different levels and strengthened their achievements and accelerated the professional development of our sales and service team. According to the criteria of performance, professional ability and lending rulings, we divided the original seed clients into free categories; seed clients, elite seed clients and independent financial advisors. We've provided different level of support to different level of seed clients. And more importantly, we provided different level of training to full support rationalization and professionalization of seed clients. We have set up a series of systematic professional training and procedures. We select and cultivate seed clients to become our exclusive independent financial advisors who have the professional ability to provide family asset allocation service. In addition to seed client channels, we are actively exploring new marketing channels. We have established and will continue to establish co-operative relationships with various management -- wealth management entities in the market.

[Foreign Speech] Recently, the wealth management industry becomes more and more standardized and mature. And as a result, the focus of wealth management market will return to standard market-oriented product. After the issuance of the 2018 asset management guideline, the CSRC issued the Measures for the Supervision and Administration of Public Offer Securities Investment Fund Distributors. Here in, after referred to as the Distribution Measures in August 2020 which will become effective on October 1st, 2020. Pursuant to the Distribution Measures, third-party fund distributors like us are defined as organizations that are specialized in distribution public raised fund