Jupai Reports Fourth Quarter and Full Year 2016 Results

SHANGHAI, Feb. 28, 2017 /PRNewswire/ -- Jupai Holdings Limited ("Jupai" or the "Company") (NYSE: JP), a leading third-party wealth management service provider, focusing on distributing wealth management products and providing quality product advisory services to high-net-worth individuals in China, today announced its unaudited financial results for the quarter and the full year ended December 31, 2016.

Effective July 1, 2016, Jupai changed its reporting currency from the U.S. dollars to Renminbi. The aligning of the reporting currency with the underlying operations better reflects the Company's results of operations for each period, and reduces the impact that the increased volatility of the Renminbi to U.S. dollars exchange rate will have on the Company's reported operating results. In this announcement, the unaudited financial results for the quarter and the full year ended December 31, 2016, respectively, are stated in Renminbi. This release contains translations of certain Renminbi amounts into U.S. dollars for convenience. Prior period financial results have been recast into the new reporting currency.

FOURTH QUARTER AND FULL YEAR 2016 FINANCIAL HIGHLIGHTS

  • Net revenues in the fourth quarter of 2016 were RMB338.5 million (US1$48.8 million), a 60.0% increase from the corresponding period in 2015. For the full year of 2016, net revenues were RMB1.1 billion (US$162.4 million), an increase of 89.5% from 2015.

(RMB '000, except percentages)

Q4 2015


Q4 2015 %


Q4 2016


Q4 2016 %


YoY Change %

One-time commissions

107,131


50.4%


185,294


54.8%


73.0%

Recurring management fees

72,210


33.9%


73,093


21.6%


1.2%

Recurring service fees

32,286


15.7%


25,849


7.6%


-19.9%

Other service fees

-


-


54,267


16.0%


100.0%

Total net revenues

211,627


100.0%


338,503


100.0%


60.0%


(RMB '000, except percentages)

FY 2015


FY 2015 %


FY 2016


FY 2016 %


YoY Change %

One-time commissions

336,450


56.6%


633,186


56.1%


88.2%

Recurring management fees

142,394


23.9%


260,622


23.1%


83.0%

Recurring service fees

116,165


19.5%


123,177


10.9%


6.0%

Other service fees

-


-


110,725


9.9%


100.0%

Total net revenues

595,009


100.0%


1,127,710


100.0%


89.5%

  • Income from operations in the fourth quarter of 2016 was RMB94.1 million (US$13.6 million), an 81.1% increase from the corresponding period in 2015. For the full year of 2016, income from operations was RMB294.8 million (US$42.5 million), an increase of 44.6% from 2015.
  • Net income attributable to ordinary shareholders in the fourth quarter of 2016 was RMB62.3 million (US$9.0 million), a 61.6% increase from the corresponding period in 2015. For the full year of 2016, net income attributable to ordinary shareholders was RMB207.6 million (US$29.9 million), an increase of 35.3% from 2015.
  • Non-GAAP2 net income attributable to ordinary shareholders in the fourth quarter of 2016 was RMB71.7 million (US$10.3 million), a 47.9% increase from the corresponding period in 2015. For the full year of 2016, non-GAAP net income attributable to ordinary shareholders was RMB243.0 million (US$35.0 million), an increase of 38.5% from 2015.

[1] The U.S. dollars (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars (US$) in this press release is based on the noon buying rate on December 30, 2016, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System, which was RMB6.9430 to US$1.00. The percentages stated in this press release are calculated based on the Renminbi amounts.


[2] Jupai's non-GAAP financial measures are derived from adjusting the corresponding GAAP financial measures by excluding the effects of share-based compensation and amortization of intangible assets resulted from business acquisitions.

FOURTH QUARTER AND FULL YEAR 2016 OPERATIONAL UPDATES 

  • Total number of active clients3 during the fourth quarter of 2016 and full year 2016 was 4,175 and 10,218, respectively.
  • The aggregate value of wealth management products distributed by the Company during the fourth quarter of 2016 was RMB14.5 billion (US$2.1 billion), a 52.7% increase from the corresponding period in 2015. For the full year of 2016, the aggregate value of wealth management products distributed by the Company was RMB45.3 billion (US$6.5 billion), a 59.4% increase from 2015.

Wealth management products distributed by the Company - breakdown by product type


Three months ended


Twelve months ended


December 31, 2015


December 31, 2016


December 31, 2015


December 31, 2016

Product type

(RMB in millions, except percentages)


(RMB in millions, except percentages)

Fixed income products

5,195

56%


10,326

72%


15,430

54%


29,963

66%

Private equity products

3,070

33%


1,903

13%


7,460

26%


9,354

21%

Secondary market equity fund products

502

4%


1,084

7%


4,232

15%


3,981

9%

Other products

719

7%


1,173

8%


1,296

5%


2,001

4%

All products

9,486

100%


14,486

100%


28,418

100%


45,299

100%

  • Jupai's coverage network as of December 31, 2016 included 79 client centers covering 43 cities, up from 50 client centers covering 29 cities, as of December 31, 2015.
  • Total assets under management4 as of December 31, 2016 were RMB36.1 billion (US$5.2 billion), a 23.1% increase from September 30, 2016 and a 189.3% increase from December 31, 2015.

Assets under management – breakdown by product type


As of


December 31, 2015


December 31, 2016

Product type

(RMB in millions, except percentages)

Fixed income products

5,315

42%


18,161

50%

Private equity products

5,695

46%


14,971

41%

Secondary market equity fund products

1,008

8%


2,980

8%

Other products

475

4%


29

1%

All products

12,493

100%


36,141

100%

"Jupai continued to see rapid growth within our core wealth management and asset management businesses, with net revenues rising almost 90% year-on-year to RMB 1.1 billion for the full year 2016," said Mr. Tianxiang Hu, Jupai's co-chairman of the board and chief executive officer. "Leveraging our extensive industry resources and outstanding professional teams, we grew the aggregate value of total products distributed by Jupai to a record high of RMB 45.3 billion in 2016, up approximately 60% year-on-year from RMB 28.4 billion in 2015. Additionally, Jupai's total assets under management increased significantly from RMB12.5 billion as of December 31, 2015, to RMB36.1 billion as of December 31, 2016. Going forward, we expect to enhance our long-term growth prospects and competitive advantages by selectively expanding our product offerings to better fulfill investors' evolving needs for wealth and asset management products."

Mr. Jianda Ni, Jupai's co-chairman and executive chairman of the board, said, "We were pleased to open Jupai's Hong Kong office in 2016, which represents the first step in our international expansion and positions us to capture overseas market opportunities. Jupai strives to provide our clients with world class products and services while maintaining strict risk control standards, as we build the leading wealth and asset management brand for high-net-worth individuals in China. Moreover, to achieve a better balance between our growth and increasing return on equity, Jupai's board of directors has approved and declared a cash dividend of US$0.083 per ordinary share (equal to US$0.5 per ADS)."

Ms. Min Liu, Jupai's chief financial officer, said, "Jupai delivered a set of healthy results in the fourth quarter of 2016, with our net revenues substantially surpassing management guidance, as we continue to enhance the Jupai brand and increase our market share. Looking into 2017, we remain confident about the outlook for our bottom line, as we continue to improve our operating efficiency, expand our business scale and optimize our product offering and revenue structure."

[3] "Active clients" for a given period refers to clients who purchase wealth management products distributed by Jupai at least once during that given period.


[4] "Assets under management" by Jupai refers to the amount of capital contributions made by the investors to the fund without adjustment for any gain or loss from investment.

FOURTH QUARTER AND FULL YEAR 2016 FINANCIAL RESULTS

Net Revenues

Net revenues for the fourth quarter of 2016 were RMB338.5 million (US$48.8 million), a 60.0% increase from the corresponding period in 2015, primarily due to increases in one-time commissions and other service fees. Net revenues were RMB1.1 billion (US$162.4 million) for the full year of 2016, an increase of 89.5% from 2015.

  • Net revenues from one-time commissions for the fourth quarter of 2016 were RMB185.3 million (US$26.7 million), a 73.0% increase from the corresponding period in 2015, primarily as a result of an increase in the aggregate value of wealth management products distributed by the company and changes in product mix. For the full year of 2016, net revenues from one-time commissions were RMB633.2 million (US$91.2 million), an increase of 88.2% from 2015.
  • Net revenues from recurring management fees for the fourth quarter of 2016 were RMB73.1 million (US$10.5 million), a 1.2% increase from the corresponding period in 2015. The Company recognized RMB3.7 million (US$0.5 million) and RMB39.3 million carried interest in the fourth quarter of 2016 and 2015, respectively. For the full year of 2016, net revenues from recurring management fees were RMB260.6 million (US$37.5 million), an 83.0% increase from 2015. RMB15.3 million (US$2.2 million) and RMB55.5 million carried interest was recognized as part of Jupai's recurring management fees for the full year of 2016 and 2015, respectively.
  • Net revenues from recurring service fees for the fourth quarter of 2016 were RMB25.8 million (US$3.7 million), a 19.9% decrease from the corresponding period in 2015, primarily due to a decline in variable performance fees. The Company recognized RMB4.1 million in variable performance fees in the fourth quarter of 2015, compared to RMB1.2 million (US$0.2 million) in the fourth quarter of 2016. For the full year of 2016, net revenues from recurring service fees were RMB123.2 million (US$17.7 million), a 6.0% increase from 2015. The Company recognized RMB14.6 million (US$2.1 million) and RMB61.6 million of variable performance fees for the full year of 2016 and 2015, respectively.
  • Net revenues from other service fees for the fourth quarter of 2016 were RMB54.3 million (US$7.8 million), which mainly include sub-advisory fees collected from other companies. For the full year of 2016, net revenues from other service fees were RMB110.7 million (US$15.9 million), an increase of 100.0% from 2015. The Company recognized these revenues for the first time in the third quarter of 2016.

Operating Costs and Expenses

Operating costs and expenses for the fourth quarter of 2016 were RMB244.4 million (US$35.2 million), an increase of 53.1% from the corresponding period in 2015. For the full year of 2016, operating costs and expenses were RMB832.9 million (US$120.0 million), an increase of 112.9% from 2015.

  • Cost of revenues for the fourth quarter of 2016 was RMB145.9 million (US$21.0 million), a 52.2% increase from the corresponding period in 2015, primarily due to increases in the number of wealth management advisors and client managers and their average compensation. For the full year of 2016, cost of revenues was RMB477.0 million (US$68.7 million), an increase of 102.2% from 2015.
  • Selling expenses for the fourth quarter of 2016 were RMB64.7 million (US$9.3 million), a 66.6% increase from the corresponding period in 2015, primarily due to increases in marketing, advertising and brand promotion expenses. For the full year of 2016, selling expenses were RMB237.3 million (US$34.2 million), an increase of 172.5% from 2015.
  • G&A expenses for the fourth quarter of 2016 were RMB49.2 million (US$7.1 million), a 47.0% increase from the corresponding period in 2015, mainly due to increases in both the numbers of managerial and administrative personnel and their compensation as well as increases in rental and office supply expenses. For the full year of 2016, G&A expenses were RMB156.0 million (US$22.5 million), an increase of 69.9% from 2015.
  • Other operating income (government subsidies) received by the Company in the fourth quarter of 2016 was RMB15.4 million (US$2.2 million), an 81.1% increase from the corresponding period in 2015. For the full year of 2016, other operating income was RMB37.4 million (US$5.4 million), an increase of 57.8% from 2015.

Operating margin for the fourth quarter of 2016 was 27.8%, compared to 24.3% for the corresponding period in 2015. For the full year of 2016, operating margin was 26.1%, compared to 34.3% in 2015.

Income tax expenses for the fourth quarter of 2016 were RMB26.0 million (US$3.7 million), a 19.4% increase from the corresponding period in 2015. The increase was primarily due to an increase in taxable income. For the full year of 2016, income tax expenses were RMB82.6 million (US$11.9 million), an increase of 22.8% from 2015.

Net Income

  • Net Income
    • Net income attributable to ordinary shareholders for the fourth quarter of 2016 was RMB62.3 million (US$9.0 million), a 61.6% increase from the corresponding period in 2015. For the full year of 2016, net income attributable to ordinary shareholders was RMB207.6 million (US$29.9 million), an increase of 35.3% from 2015.
    • Net margin attributable to ordinary shareholders for the fourth quarter of 2016 was 18.4%, as compared to 18.0% for the corresponding period in 2015. For the full year of 2016, net margin attributable to ordinary shareholders was 18.4%, compared to 25.8% in 2015.
    • Net income attributable to ordinary shareholders per basic and diluted American depositary share ("ADS") for the fourth quarter of 2016 was RMB1.93 (US$0.28) and RMB1.85 (US$0.27), respectively, as compared to RMB1.29 and RMB1.24, respectively, for the corresponding period in 2015. For the full year of 2016, net income attributable to ordinary shareholders per basic and diluted ADS was RMB6.46 (US$0.93) and RMB6.20 (US$0.89), respectively, as compared to RMB6.36 and RMB6.06, respectively, in 2015.
       
  • Non-GAAP Net Income
    • Non-GAAP net income attributable to ordinary shareholders for the fourth quarter of 2016 was RMB71.7 million (US$10.3 million), a 47.9% increase from the corresponding period in 2015. For the full year of 2016, non-GAAP net income attributable to ordinary shareholders was RMB243.0 million (US$35.0 million), a 38.5% increase from 2015.
    • Non-GAAP net margin attributable to ordinary shareholders for the fourth quarter of 2016 was 21.2%, as compared to 22.7% for the corresponding period in 2015. For the full year of 2016, non-GAAP net margin attributable to ordinary shareholders was 21.5%, as compared to 29.5% in 2015.
    • Non-GAAP net income attributable to ordinary shareholders per diluted ADS for the fourth quarter of 2016 was RMB2.13 (US$0.31), as compared to RMB1.56 for the corresponding period in 2015. For the full year of 2016, non-GAAP net income attributable to ordinary shareholders per diluted ADS was RMB7.26 (US$1.05), as compared to RMB8.80 in 2015.

Balance Sheet and Cash Flow

As of December 31, 2016, the Company had RMB1,123.2 million (US$161.8 million) in cash and cash equivalents, compared to RMB795.5 million as of December 31, 2015.

Net cash provided by operating activities during the fourth quarter of 2016 was RMB169.3 million (US$24.4 million). For the full year of 2016, net cash provided by operating activities was RMB211.4 million (US$30.4 million).

Net cash provided by investing activities during the fourth quarter of 2016 was RMB28.2 million (US$4.1 million). For the full year of 2016, net cash provided by investing activities was RMB1.9 million (US$0.3 million).

Net cash used in financing activities during the fourth quarter of 2016 was RMB26.6 million (US$3.8 million). For the full year of 2016, net cash provided by financing activities was RMB114.4 million (US$16.5 million).

Dividend

The Company announced today that its board of directors has approved and declared a cash dividend of US$0.083 per ordinary share. Holders of Jupai's ADSs, each representing six ordinary shares of Jupai, are accordingly entitled to the cash dividend of US$0.5 per ADS. The cash dividend will be paid on or about Apri 3, 2017 to shareholders of record as of the close of business on March 20, 2017. The aggregate amount of cash dividends to be paid is approximately US$16 million, which will be funded by surplus cash on the Company's balance sheet.

The determination to make dividend distributions and the amount of such distributions in any particular year will be made at the discretion of the board of directors and will be based upon the Company's operations and earnings, cash flow, financial condition and other relevant factors.

BUSINESS OUTLOOK

The Company estimates that its net revenues for the first quarter of 2017 will be in the range of RMB314 million to RMB336 million, an increase of 40% to 50% compared to the same period in 2016. This forecast reflects the Company's current and preliminary view, which is subject to change.

CONFERENCE CALL

Jupai's management will host an earnings conference call on February 28, 2017 at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows:

U.S./International:

+1-855-298-3404 or +1-631-514-2526

Hong Kong:

800-905-927 or +852-5808-3202

Mainland China:

400-120-0539

Singapore

800-616-3222 or +65-3157-9230

Passcode:

6677671

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until March 7, 2017:

U.S./International:

+1-866-846-0868

Hong Kong:

800-966-697

Mainland China:

400-184-2240

Singapore

800-616-2127

Passcode:

6677671

Additionally, a live and archived webcast will be available at http://jupai.investorroom.com.

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures that exclude the effects of all forms of share-based compensation and amortization of intangible assets related to acquisition. The reconciliation of these non-GAAP financial measures to the nearest GAAP measures as set forth in the table captioned "Reconciliation of GAAP to Non-GAAP Results" below.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measure used by the Company may be prepared differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

When evaluating the Company's operating performance in the periods presented, management reviewed non-GAAP net income results reflecting adjustments to exclude the impacts of share-based compensation and amortization of intangible assets related to acquisition to supplement U.S. GAAP financial data. As such, the Company believes that the presentation of the non-GAAP net income attributable to ordinary shareholders, non-GAAP net income attributable to ordinary shares per diluted ADS and non-GAAP net margin attributable to ordinary shareholders provides important supplemental information to investors regarding financial and business trends relating to the Company's financial condition and results of operations in a manner consistent with that used by management. Pursuant to U.S. GAAP, the Company recognized significant amounts of expenses for the restricted shares and share options, and amortization of intangible assets related to acquisition in the periods presented. The Company utilized the non-GAAP financial results to make financial results comparable period to period and to better understand its historical business operations.

ABOUT JUPAI HOLDINGS LIMITED

Jupai Holdings Limited ("Jupai") (NYSE: JP) is a leading third-party wealth management service provider focusing on distributing wealth management products and providing quality product advisory services to high-net-worth individuals in China. Jupai's comprehensive and personalized client service and broad range of carefully selected third-party and self-developed products have made it a trusted brand among its clients. Jupai maintains extensive and targeted coverage of China's high-net-worth population. 

For more information, please visit http://jupai.investorroom.com.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Jupai's strategic and operational plans, contain forward-looking statements. Jupai may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Jupai's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the goals and strategies of the Company and the Company's ability to manage its growth and implement its business strategies; future business development, financial condition and results of operations of the Company; condition of the wealth management market in China and internationally; the demand for and market acceptance of the products the Company distributes; the Company's ability to maintain and further grow its active high-net-worth client base and maintain or increase the amount of investment by clients; developments in relevant government policies and regulations relating to the Company's industry and the Company's ability to comply with those policies and regulations; the Company's ability to attract and retain quality employees; the Company's ability to adapt to potential uncertainties in China's real estate industry and stay abreast of market trends and technological advances; the results of the Company's investments in research and development to enhance its product choices and service offerings; general economic and business conditions in China; the result of the integration of E-House Capital into the Company; and the Company's ability to protect its reputation and enhance its brand recognition. Further information regarding these and other risks is included in Jupai's filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and Jupai does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under applicable law.

Contacts:

Jupai Holdings Limited

Harry He
Director of Investor Relations
Jupai Holdings Limited
Phone: +86 (21) 6026 9129
Email: ir@jpinvestment.cn

Philip Lisio
The Foote Group
Email: Jupai-IR@thefootegroup.com

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Jupai Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

(In RMB)



As of


December 31,


December 31,


December 31,


2015


2016


2016


RMB


RMB


USD

Assets






Current assets:






Cash and cash equivalents

795,497,163


1,123,166,156


161,769,575

Short-term investments

72,446,602


25,210,000


3,630,995

Short-term entrusted investments

1,868,839


-


-

Accounts receivable

26,008,543


52,111,944


7,505,681

Other receivables

33,539,256


79,041,821


11,384,390

Amounts due from related parties

11,923,607


133,560,483


19,236,711

Deferred tax assets — current

46,020,741


56,246,396


8,101,166

Other current assets

6,659,354


12,551,186


1,807,747







Total current assets

993,964,105


1,481,887,986


213,436,265

Long-term investments

64,859,168


30,000,000


4,320,899

Investment in affiliates

75,182,868


126,280,444


18,188,167

Advanced payment for acquisition

94,888,600


77,560,000


11,170,964

Property and equipment, net

16,064,933


37,199,812


5,357,887

Intangible assets

54,754,172


83,072,545


11,964,935

Goodwill

259,714,506


277,752,765


40,004,719

Long-term prepayment

1,900,385


6,261,152


901,793

Deferred tax assets — non-current

8,073,577


8,494,738


1,223,497







Total Assets

1,569,402,314


2,128,509,442


306,569,126







Liabilities and Equity






Current liabilities:






Accrued payroll and welfare expenses

80,806,138


101,864,006


14,671,469

Income tax payable

103,337,008


138,131,812


19,895,119

Other tax payable

39,220,006


58,189,283


8,381,000

Dividend payable

7,499,998


10,160,503


1,463,417

Amounts due to related parties-current

-


6,118,678


881,273

Deferred revenue from related parties

83,752,232


121,644,250


17,520,416

Deferred revenues

58,157,948


36,432,195


5,247,328

Other current liabilities

4,742,957


10,397,009


1,497,481







Total current liabilities

377,516,287


482,937,736


69,557,503

Amounts due to related parties-non current

34,286,208


-


-

Deferred revenue — non-current from related parties

30,708,429


75,413,617


10,861,820

Deferred revenue — non-current

3,561,506


5,677,905


817,788

Non-current uncertain tax position liabilities

5,372,253


5,938,816


855,367

Deferred tax liabilities— non-current

13,688,541


10,270,618


1,479,277







Total Liabilities

465,133,224


580,238,692


83,571,755

Equity

1,104,269,090


1,548,270,750


222,997,371







Total Liabilities and Total Shareholders' Equity

1,569,402,314


2,128,509,442


306,569,126

 

Jupai Holdings Limited

Unaudited Condensed Consolidated Income Statements

(In RMB, except for ADS data, per ADS data and percentages)



Three months ended



December 31,


December 31,


December 31,


YoY Change %


2015


2016


2016




RMB


RMB


USD



Revenues








Third party revenues

79,424,306


118,858,942


17,119,248


49.7%

Related party revenues

136,570,648


221,320,799


31,876,824


62.1%

Total revenues

215,994,954


340,179,741


48,996,072


57.5%

Business taxes and related surcharges

(4,367,880)


(1,676,536)


(241,471)


-61.6%









Net revenues

211,627,074


338,503,205


48,754,601


60.0%









Operating costs and expenses:








Cost of revenues

(95,846,969)


(145,890,981)


(21,012,672)


52.2%

Selling expenses

(38,861,098)


(64,725,845)


(9,322,461)


66.6%

General and administrative expenses

(33,438,474)


(49,156,055)


(7,079,945)


47.0%

Other operating income — government subsidies

8,483,042


15,358,806


2,212,128


81.1%









Total operating cost and expenses

(159,663,499)


(244,414,075)


(35,202,950)


53.1%









Income from operations

51,963,575


94,089,130


13,551,651


81.1%









Interest income

446,534


323,632


46,613


-27.5%

Investment income

5,046,841


1,344,072


193,587


-73.4%

Gain from disposal of investment in affiliates

4,500,000


-


-


-100.0%

Other loss

(466,104)


(190,557)


(27,446)


-59.1%









Total other income

9,527,271


1,477,147


212,754


-84.5%









Income before taxes and income from equity in affiliates

61,490,846


95,566,277


13,764,405


55.4%

Income tax expense

(21,728,676)


(25,950,122)


(3,737,595)


19.4%

Income from equity in affiliates

2,005,641


2,444,297


352,052


21.9%









Net income

41,767,811


72,060,452


10,378,862


72.5%

Net income attributable to non-controlling interests

(3,224,576)


(9,781,558)


(1,408,837)


203.3%









Net income attributable to ordinary shareholders

38,543,235


62,278,894


8,970,025


61.6%

















Net income per ADS:








Basic

1.29


1.93


0.28


49.6%

Diluted

1.24


1.85


0.27


49.2%

Weighted average number of ADSs used in computation:








Basic

29,931,127


32,266,156


32,266,156



Diluted

31,132,623


33,573,542


33,573,542



 

Jupai Holdings Limited

Unaudited Condensed Consolidated Income Statements

(In RMB, except for ADS data, per ADS data and percentages)





Twelve months ended



December 31,


December 31,


December 31,


YoY Change %


2015


2016


2016




RMB


RMB


USD



Revenues








Third party revenues

266,182,435


415,295,453


59,814,987


56.0%

Related party revenues

336,254,013


716,130,680


103,144,272


113.0%

Total revenues

602,436,448


1,131,426,133


162,959,259


87.8%

Business taxes and related surcharges

(7,427,171)


(3,715,689)


(535,171)


-50.0%









Net revenues

595,009,277


1,127,710,444


162,424,088


89.5%









Operating costs and expenses:








Cost of revenues

(235,943,955)


(477,034,912)


(68,707,318)


102.2%

Selling expenses

(87,091,525)


(237,297,482)


(34,177,946)


172.5%

General and administrative expenses

(91,777,836)


(155,958,876)


(22,462,750)


69.9%

Other operating income — government subsidies

23,684,945


37,385,834


5,384,680


57.8%









Total operating cost and expenses

(391,128,371)


(832,905,436)


(119,963,334)


112.9%









Income from operations

203,880,906


294,805,008


42,460,754


44.6%









Interest income

2,794,977


3,712,918


534,771


32.8%

Investment income

19,076,015


12,619,887


1,817,642


-33.8%

Gain from disposal of investment in affiliates

2,330,001


-


-


-100%

Other income (loss)

2,095,199


(19,568)


(2,818)


-100.9%









Total other income

26,296,192


16,313,237


2,349,595


-38.0%









Income before taxes and income from equity in affiliates

230,177,098


311,118,245


44,810,349


35.2%

Income tax expense

(67,246,490)


(82,612,132)


(11,898,622)


22.8%

Income from equity in affiliates

4,333,847


1,539,316


221,708


-64.5%









Net income

167,264,455


230,045,429


33,133,435


37.5%

Net income attributable to non-controlling interests

(13,787,949)


(22,461,561)


(3,235,138)


62.9%









Net income attributable to ordinary shareholders

153,476,506


207,583,868


29,898,297


35.3%

















Net income per ADS:








Basic

6.36


6.46


0.93


1.6%

Diluted

6.06


6.20


0.89


2.3%

Weighted average number of ADSs used in computation:








Basic

19,020,717


32,112,336


32,112,336



Diluted

19,933,158


33,460,986


33,460,986



 


Jupai Holdings Limited

Unaudited Condensed Comprehensive Income Statements

(In RMB)



Three months ended



December 31,


December 31,


December 31,


Change


2015


2016


2016




RMB


RMB


USD



Net income

41,767,811


72,060,452


10,378,862


73%

Other comprehensive income, net of tax:








Change in fair value of available-for-sale investment

305,807


-


-


-100%

Disposal of available-for-sale investment

(678,859)


-


-


-100%

Change in cumulative foreign currency translation adjustment

22,999,250


21,826,553


3,143,678


-5%

 Other comprehensive income

22,626,198


21,826,553


3,143,678


-4%









Comprehensive income

64,394,009


93,887,005


13,522,540


46%

Less: Comprehensive income attributable to non-controlling interests

3,283,745


10,408,097


1,499,078


217%









Comprehensive income attributable to ordinary shareholders

61,110,264


83,478,908


12,023,462


37%

 

Jupai Holdings Limited
Unaudited Condensed Comprehensive Income Statements
(In RMB)





Twelve months ended



December 31,


December 31,


December 31,


Change


2015


2016


2016




RMB


RMB


USD



Net income

167,264,455


230,045,429


33,133,435


38%

Other comprehensive income, net of tax:








Change in fair value of available-for-sale investment

936,959


-


-


-100%

Disposal of available-for-sale investment

(979,665)


-


-


-100%

Change in cumulative foreign currency translation adjustment

34,375,809


44,026,899


6,341,192


28%

Other comprehensive income

34,333,103


44,026,899


6,341,192


28%









Comprehensive income

201,597,558


274,072,328


39,474,627


36%

Less: Comprehensive income attributable to non-controlling interests

13,847,117


23,670,967


3,409,328


71%









Comprehensive income attributable to ordinary shareholders

187,750,441


250,401,361


36,065,299


33%

 

Jupai Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for ADS data and percentages)





Three months ended



December 31,


December 31,


Change


2015


2016




RMB


RMB



Net margin attributable to ordinary shareholders

18.0%


18.4%



Adjusted net margin attributable to ordinary shareholders (non-GAAP)

22.7%


21.2%









Net income attributable to ordinary shareholders

38,543,235


62,278,894


61.6%

Adjustment for share-based compensation

6,590,945


5,832,454


-11.5%

Adjustment for amortization of intangible assets related to acquisition

3,306,533


3,549,952


7.4%

Adjusted net income attributable to ordinary shares (non-GAAP)

48,440,713


71,661,300


47.9%







Net income attributable to ordinary shares per ADS, diluted

1.24


1.85


49.2%

Adjusted net income attributable to ordinary shares per ADS, diluted (non-GAAP)

1.56


2.13


36.5%







Weighted average number of ADSs used in computation:






Diluted

31,132,623


33,573,542


7.8%

 

Jupai Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for ADS data and percentages)





Twelve months ended



December 31,


December 31,


Change


2015


2016




RMB


RMB



Net margin attributable to ordinary shareholders

25.8%


18.4%



Adjusted net margin attributable to ordinary shareholders (non-GAAP)

29.5%


21.5%









Net income attributable to ordinary shareholders

153,476,506


207,583,868


35.3%

Adjustment for share-based compensation

15,895,439


21,423,694


34.8%

Adjustment for amortization of intangible assets related to acquisition

6,009,488


13,961,969


132.3%

Adjusted net income attributable to ordinary shares (non-GAAP)

175,381,433


242,969,531


38.5%







Net income attributable to ordinary shares per ADS, diluted

6.06


6.20


2.3%

Adjusted net income attributable to ordinary shares per ADS, diluted (non-GAAP)

8.80


7.26


-17.5%







Weighted average number of ADSs used in computation:






Diluted

19,933,158


33,460,986


67.9%

SOURCE Jupai Holdings Limited


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