Shanghai-based wealth manager Jupai Holdings’ revenues fell by 53.2% to RMB 85.1m ($12.9m) during the third quarter from the same period last year, according to the firm’s latest quarterly unaudited financial results. This quarter’s results are also lower compared with the second quarter, when revenues were RMB 108.4m.
One-time commissions were hit the hardest during the quarter, which decreased 64.6% to RMB 36.3m, followed by recurring management fees (-55.3% to RMB 22.4m).
The lower profits were dragged down by lowered investment activity by investors, as they continue to remain cautious about the pandemic.
“Due to uncertainties about the economic recovery, including a second wave of the virus in Europe and the continued tension between China and the US, high net worth individuals have remained cautious in their investment activity,” a Jupai spokesman said.
The aggregate value of wealth management products distributed by Jupai amounted to RMB 2bn during the third quarter, which is 26.3% lower than the corresponding period last year. In addition, there were fewer active clients in Q3, which totalled 712, compared with 1,058 in Q3 2019. Active clients refer to those who purchased wealth management products at least once during a period.
The firm’s total assets under management were also down 30% to RMB 34.7bn from RMB 45.1bn in September last year, according to the report.