Puyi Inc (NASDAQ:PUYI) Q4 2020 Earnings Conference Call - Final Transcript
Sep 28, 2020 • 09:00 pm ET
expand our client base has achieved remarkable results. In addition, the strategy to use packaged public raised fund products on dollar averaging basis as [Indecipherable] acquisition through has been proven to be effective. In the fiscal year 2021, we will continue to invest extensively in market promotion or pay more clients, increase outstanding balance of public raised fund products, which may lay a solid foundation for our long-term strategy.
[Foreign Speech] In terms of asset management and risk management, on the one hand, we will continue to improve our ability in research and risk management for introduction of the [Indecipherable]. And on the other hand, we will sell-out the process of research and risk management and establish a standardized and systematic research and risk management system.
[Foreign Speech] In terms of compliance, the OSG compliance management as the red line and lifeline for operation, particularly, we will carry our most strengthened sales to the ability of management, product introduction management, sales-personnel qualification management [Indecipherable] document management and company's hot data management in the fiscal year 2021.
[Foreign Speech] Since early 2020, the novel coronavirus surfaced in path of China. Motion and transaction of privately raised fund products are mainly conducted offline. The offline branch office staff like face to face communication opportunity with our clients. Due to the impact of the epidemic and as a result, the sales of privately raised fund products has been affected. In addition, this year sale has also been affected by our off product structure transformation to truly market-oriented product and with the substantial resource to market promotion activities or public raised fund products, our net revenue and net income declined compared to the previous year, but this results are under the control of the management.
[Foreign Speech] In the fiscal year 2020, product structure transformation strategy actively adopted by us has been achieved and extended resource invested in market promotion activities for publicly raised fund products also make great returns. With the strict control measures of the Chinese government, the epidemic situation has been effectively controlled and China's economy has returned to the normal track. The growing number of the emerging middle class and mass affluent families has restored confidence in China's overall economic recovery and their investment demand for wealth preservation and appreciation remains strong. In fiscal year 2021, we will continue the three cost strategies; expanding client base; [Indecipherable] management of clients and focus on packaged product. And with the effective implementation of the above measures the management is confident of the strong development of the company in the future.
Thank you all for listening. Now, we will open for questions. Operator?