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Jupai’s revenues down 40% in Q2

The firm's total AUM was also down 20% to RMB 37.5bn from June last year.

Jupai Holdings, which focuses on distributing wealth management products and advisory services to high net worth individuals in China, has reported that revenues in the second quarter were RMB 108.4m ($15.3m), which is 41.7% lower compared with the RMB 185.9m figure during the same period last year, according to the firm’s unaudited financial results.

Recurring management fees were hit the hardest during the quarter, which were down 51.7% to RMB 32.7m, followed by one-time commissions (-44.8% to RMB 47.8m).

The firm’s second quarter results saw a slight improvement from the previous quarter, however, when the firm reported that revenues were down 65.5% during the first three months compared with the same period in 2019.

“Jupai’s bottom line improved sequentially in the second quarter, as our effective cost control measures helped to offset the market challenges created by ongoing investor caution during the economic recovery following the outbreak of COVID-19,” Jianda Ni, Jupai’s chairman of the board and CEO, said in a conference call last Friday.

According to the report, the firm cut the number of its client centres to 36 covering 34 cities from 61 client centres covering 45 cities in June last year.

For its first half results, revenues were at RMB 205m, which is 56.1% lower compared with the same period in 2019.

Sales down

During the second quarter, the aggregate value of wealth management products distributed by Jupai was RMB 1.9bn, which is 24.3% lower compared to the same period last year. For the first half, the figure was at RMB 3.3bn, which is a 36.8% decrease from H1 2019 (RMB 5.3bn).

Source: Jupai

However, while the value of wealth management offerings was down across all product types, secondary market equity products were up by 272% in H1.

The firm’s total AUM was also down 20% to RMB 37.5bn from June last year, according to the report.

Source: Jupai Holdings.

Part of the Mark Allen Group.