FINANCIAL HIGHLIGHTS FOR THE FIRST HALF OF THE FISCAL YEAR 2020
- Net revenues decreased by 49.8% to
RMB62.4 million (US$9.0 million ) fromRMB124.3 million for the same period of the fiscal year 2019; and - Net loss was
RMB22.6 million (US$3.2 million ) and net loss attributable to Puyi’s shareholders wasRMB22.0 million (US$3.2 million ), whilePuyi recognized net income ofRMB45.6 million and net income attributable toPuyi's shareholders ofRMB46.5 million for the same period of the fiscal year 2019.
Mr.
“With the further implementation of the Guidelines on Standardizing Asset Management Businesses of Financial Institutions, or the 2018 Guidelines, the focus of wealth management market in
For the second half of the fiscal year 2020, we will continue to focus on truly market-oriented wealth management products and further implement the strategies emphasizing client base expansion and information technology platform development, which are expected to continue to increase our selling expenses and general and administrative expenses in short term, but have tremendous potential in generating long-term and sustainable growth in our business and operation results in the view of our management.
The recent outbreak of novel coronavirus COVID-19 surfaced in
We have been closely monitoring the COVID-19 outbreak and fully observed the government’s requirements and guidelines on disease control. In the meanwhile, we have actively coped with the negative impact on our operations. We have deeply engaged in our online platforms and social e-commerce based sales model to distribute publicly raised fund products, offer comprehensive investor education and promote our products. In addition, to improve the efficiency of our distribution of privately raised fund products, we have endeavored to become one of the first movers that can provide customer services related to privately raised fund products online.
We believe the investment demand of the mass affluent and emerging middle class population in
FINANCIAL RESULTS FOR THE FIRST HALF OF THE FISCAL YEAR 2020
Net revenues
Net revenues for the first half of the fiscal year 2020 were
- Net revenues generated from our wealth management services for the first half of the fiscal year 2020 were
RMB57.7 million (US$8.3 million ), representing a 50.2 % decrease fromRMB115.9 million for the same period of fiscal year 2019. In particular,- Net revenues generated from distribution of privately raised fund products for the first half of the fiscal year 2020 were
RMB32.0 million (US$4.6 million ), representing a 66.2% decrease fromRMB94.7 million for the same period of fiscal year 2019. The decrease was primarily due to (i) the decreased transaction value of privately raised fund products as we further optimized our product portfolio and significantly downsized the distribution of privately equity funds that invest in private companies; and (ii) the decrease in recognized performance-based fees toRMB4.6 million (US$0.7 million ), fromRMB40.0 million for the same period of the fiscal year 2019; - Net revenues generated from distribution of publicly raised fund products for the first half of the fiscal year 2020 were
RMB13.0 million (US$1.9 million ), representing a significant increase fromRMB1.4 million for the same period of fiscal year 2019. The increase was primarily due to an increase in commissions generated from the distribution of publicly raised fund products (including packaged fund products1); and - Net revenues generated from the distribution of other financial products for the first half of the fiscal year 2020 were
RMB12.7 million (US$1.8 million ), representing a 35.8% decrease fromRMB19.8 million for the same period of the fiscal year 2019. The decrease was primarily because we have focused on distribution of fund products and ceased to offer exchange administered products sinceOctober 2019 .
- Net revenues generated from distribution of privately raised fund products for the first half of the fiscal year 2020 were
- Net revenues generated from our asset management services for the first half of the fiscal year 2020 were
RMB4.6 million (US$0.7 million ), representing a significant increase fromRMB1.1 million for the same period of the fiscal year 2019. The increase was primarily due to (i) a recognition ofRMB2.5 million carried interest generated byRui Xuan Fund (睿选基金) under our management; and (ii) an increase in management fees as a result of the increase in the asset scale under our management. - Net revenues generated from our corporate finance services for the first half of the fiscal year 2020 were
RMB6,000 (US$1,000 ), representing a significant decrease fromRMB6.2 million for the same period of the fiscal year 2019. The decrease was because we further consolidated our resources to mainly focus on the development of wealth management services. - Net revenues generated from other services for the first half of the fiscal year 2020 were nil, compared to
RMB1.1 million for the same period of fiscal year 2019, as we have ceased to offer factoring services to third parties.
Operating costs and expenses
Operating costs and expenses for the first half of the fiscal year 2020 were
- Cost of sales for the first half of the fiscal year 2020 were
RMB18.9 million (US$2.7 million ), representing a 45.0% increase fromRMB13.0 million for the same period of the fiscal year 2019. The increase was primarily due to (i) a significant increase in the number of privately raised fund products distributed on a gross-commission basis under which we recognized the commissions paid to third parties including seed clients as cost of sales; and (ii) an increase in commission expenses as a result of the significant increase in the distribution of publicly raised fund products; - Selling expenses for the first half of the fiscal year 2020 were
RMB49.2 million (US$7.1 million ), representing a 46.6% increase fromRMB33.6 million for the same period of the fiscal year 2019. This increase was due to (i) an increase in the number of investment advisors to support our marketing and sales promotion; and (ii) our increased marketing and sales promotion activities on publicly raised fund products; and - General and administrative expenses for the first half of the fiscal year 2020 were
RMB29.9 million (US$4.3 million ), representing a 18.3% increase fromRMB25.3 million for the same period of the fiscal year 2019. The increase was primarily due to increases in the salary level and scale of administrative staff.
Investment Income
Our investment Income for the first half of the fiscal year 2020 was
Interest Income
Interest income for the first half of the fiscal year 2020 was
Other Income
Other income for the first half of the fiscal year 2020 was
Income Tax Benefit (Expenses)
We recognized income tax benefit of
Net Income (Loss)
We recognized net loss of
Net Income (Loss) Attributable to Puyi’s Shareholders
We recognized net loss attributable to Puyi’s shareholders of
Basic and Diluted Income (Loss) per ADS
Basic and diluted loss per ADS for the first half of the fiscal year 2020 was
Cash, Cash Equivalents and Restricted Cash
As of
OPERATING DATA FOR THE FIRST HALF OF THE FISCAL YEAR 2020
Wealth Management Services
From the first half of the fiscal year 2019 to the same period of the fiscal year 2020, the total transaction value of publicly raised fund products increased by 100% from
The outstanding balance of privately raised fund products was
Asset Management Services
For the first half of fiscal year 2020, the FOFs under our asset management services raised a gross additional capital of
Supervision and Inspection
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company’s unaudited financial results and business development for the first half of the fiscal year 2020 ended
Details for the conference call are as follows:
Date/Time: | |
( |
Conference Title:
Conference ID #:5249257
Due to the recent outbreak of a novel coronavirus named COVID-19, the conference call will be a Direct Event call, which requires online registration in advance. Please use the link http://apac.directeventreg.com/registration/event/5249257 to complete the online registration at least 15 minutes prior to the commencement of the conference call. You will receive a confirmation email containing the Direct Event Passcode, Registrant ID, list of dial in numbers and a brief description of how to join the call. Please call the dial in number associated with your location at least 15 minutes prior to the commencement of the conference call and follow the relevant instructions to enter the Direct Event Passcode and Registrant ID, then you will join the conference call.
Additionally, a live and archived webcast of the conference call will be available at Puyi’s investor relations website http://ir.puyiwm.com/news-events/events.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the first half of fiscal year 2020 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise indicated, all translations from RMB to US$ are made at a rate of
SAFE HARBOR STATEMENT
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the third-party wealth management industry in
_______________________________________
1 Packaged publicly raised fund products are similar to fund of funds (FoFs) by selecting different publicly raised funds and group into portfolios suitable for different risk appetites of target clients.
Unaudited Condensed Consolidated Balance Sheets | |||||||||||
(in thousands) | |||||||||||
As of | As of | ||||||||||
2019 | 2019 | 2019 | |||||||||
RMB’000 | RMB’000 | USD’000 | |||||||||
ASSETS: | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | 378,445 | 334,399 | 48,033 | ||||||||
Restricted cash | 51,823 | 19,099 | 2,743 | ||||||||
Short term Investments | 2,000 | 34,000 | 4,884 | ||||||||
Accounts receivable, net | 27,767 | 32,452 | 4,662 | ||||||||
Due from related parties | 590 | 590 | 85 | ||||||||
Other receivables | 6,499 | 4,729 | 679 | ||||||||
Total current assets | 467,124 | 425,269 | 61,086 | ||||||||
Long-term investments | 2,000 | - | - | ||||||||
Property and equipment, net | 4,026 | 4,022 | 578 | ||||||||
Intangible assets, net | 733 | 548 | 79 | ||||||||
Long-term prepayments | 393 | 393 | 56 | ||||||||
Deferred tax assets | 5,133 | 8,036 | 1,154 | ||||||||
Right of use asset | - | 23,879 | 3,430 | ||||||||
Total assets | 479,409 | 462,147 | 66,383 | ||||||||
LIABILITIES AND EQUITY: | |||||||||||
LIABILITIES: | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | 5,873 | 8,617 | 1,238 | ||||||||
Investors’ deposit | 51,823 | 19,099 | 2,743 | ||||||||
Advance receipts | 180 | 18 | 3 | ||||||||
Other tax liabilities | 9,300 | 9,300 | 1,336 | ||||||||
Other payables and accrued expenses | 8,657 | 27,360 | 3,930 | ||||||||
Total current liabilities | 75,833 | 64,394 | 9,250 | ||||||||
Lease liabilities | - | 16,538 | 2,376 | ||||||||
Total liabilities | 75,833 | 80,932 | 11,626 | ||||||||
Commitments and contingencies | |||||||||||
EQUITY: | |||||||||||
Ordinary shares | 600 | 600 | 86 | ||||||||
Additional paid-in capital | 224,702 | 224,702 | 32,276 | ||||||||
Statutory reserves | 19,824 | 20,306 | 2,917 | ||||||||
Retained earnings | 155,266 | 132,749 | 19,068 | ||||||||
Other comprehensive income | 11 | 238 | 34 | ||||||||
Total Puyi Inc.’s equity | 400,403 | 378,595 | 54,381 | ||||||||
Non-controlling interests | 3,173 | 2,620 | 376 | ||||||||
Total equity | 403,576 | 381,215 | 54,757 | ||||||||
Total liabilities and equity | 479,409 | 462,147 | 66,383 | ||||||||
Unaudited Condensed Consolidated Statements of | ||||||||||||||||
Operations and Comprehensive Income (Loss) | ||||||||||||||||
(In thousands, except for percentages) | ||||||||||||||||
Six months ended | ||||||||||||||||
RMB’000 | RMB’000 | USD’000 | Change (%) | |||||||||||||
Net Revenues: | ||||||||||||||||
Wealth management 1 | 115,867 | 57,729 | 8,292 | (50.2 | %) | |||||||||||
Asset management | 1,055 | 4,625 | 664 | 338.4 | % | |||||||||||
Corporate finance 1 | 6,219 | 6 | 1 | (99.9 | %) | |||||||||||
Other revenue | 1,109 | - | - | (100.0 | %) | |||||||||||
Total net revenues | 124,250 | 62,360 | 8,957 | (49.8 | %) | |||||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of goods sold | (13,046 | ) | (18,915 | ) | (2,717 | ) | 45.0 | % | ||||||||
Selling expenses | (33,569 | ) | (49,205 | ) | (7,068 | ) | 46.6 | % | ||||||||
General and administrative expenses | (25,262 | ) | (29,874 | ) | (4,291 | ) | 18.3 | % | ||||||||
Total operating costs and expenses | (71,877 | ) | (97,994 | ) | (14,076 | ) | 36.3 | % | ||||||||
Income (loss) from operations | 52,373 | (35,634 | ) | (5,119 | ) | NA | ||||||||||
Other income: | ||||||||||||||||
Interest income 1 | 2,749 | 5,184 | 745 | 88.6 | % | |||||||||||
Interest expenses | (1,048 | ) | - | - | (100.0 | %) | ||||||||||
Investment income 1 | 162 | 345 | 50 | 113.0 | % | |||||||||||
Other income | 264 | 4,747 | 681 | 1,698.1 | % | |||||||||||
Income (loss) before taxes | 54,500 | (25,358 | ) | (3,643 | ) | NA | ||||||||||
Income tax benefit (expense) | (8,913 | ) | 2,771 | 398 | NA | |||||||||||
Net income (loss) | 45,587 | (22,587 | ) | (3,245 | ) | NA | ||||||||||
Less: net loss attributable to non-controlling interests | (908 | ) | (552 | ) | (79 | ) | (39.2 | %) | ||||||||
Net income (loss) attributable to Puyi Inc.’s shareholders | 46,495 | (22,035 | ) | (3,166 | ) | NA | ||||||||||
_______________________________________ 1 The Company has reclassified the comparative amount of net revenues of corporate finance and investment income in the unaudited condensed consolidated statements of income for the six months |
||||||||||||||||
Unaudited Condensed Consolidated Statements of | ||||||||||||||
Operations and Comprehensive Income (Loss) (Continued) | ||||||||||||||
(In thousands, except for shares, income per share, income per ADS) | ||||||||||||||
Six months ended | ||||||||||||||
RMB’000 | RMB’000 | USD’000 | ||||||||||||
Net income (loss) per share: | ||||||||||||||
Basic | 0.563 | (0.244 | ) | (0.035 | ) | |||||||||
Diluted | 0.563 | (0.244 | ) | (0.035 | ) | |||||||||
Net income (loss) per ADS: | ||||||||||||||
Basic | 0.845 | (0.366 | ) | (0.053 | ) | |||||||||
Diluted | 0.845 | (0.366 | ) | (0.053 | ) | |||||||||
Weighted average shares used in calculating net income (loss) per share; | ||||||||||||||
Basic | 82,578,859 | 90,472,014 | 90,472,014 | |||||||||||
Diluted | 82,578,859 | 90,472,014 | 90,472,014 | |||||||||||
Net income (loss) | 45,587 | (22,587 | ) | (3,244 | ) | |||||||||
Other comprehensive income | 91 | 227 | 32 | |||||||||||
Comprehensive income (loss) | 45,678 | (22,360 | ) | (3,212 | ) | |||||||||
Less: Comprehensive loss attributable to the non-controlling interests | (908 | ) | (552 | ) | (79 | ) | ||||||||
Comprehensive income (loss) attributable to Puyi Inc.’s shareholders | 46,586 | (21,808 | ) | (3,133 | ) | |||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||||
(In thousands) | |||||||||||||
Six months ended | |||||||||||||
RMB’000 | RMB’000 | USD’000 | |||||||||||
Net cash generated from (provided to) operating activities | 46,257 | (49,609 | ) | (7,126 | ) | ||||||||
Net cash generated from (provided to) investing activities | 52,464 | (28,912 | ) | (4,153 | ) | ||||||||
Net cash generated from financing activities | 1,402 | - | - | ||||||||||
Net increase (decrease) in cash and cash equivalents, and restricted cash | 100,123 | (78,521 | ) | (11,279 | ) | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | 112,000 | 430,268 | 61,804 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | 91 | 1,751 | 252 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | 212,214 | 353,498 | 50,777 | ||||||||||
Contacts:Puyi Inc. Jing He ,GM ofFinancial Reporting Department Email: ir@puyiwm.com Tel: +86 20-28866499
Source: Puyi Inc.