Jupai Reports Declining Revenue, Net Loss In Q1
Shares of Jupai Holdings Ltd. (NYSE: JP) inched down 2.49 percent on Monday, closed at $2.35 per American depositary share after reporting declined revenue and net loss for the first quarter.
The Shanghai-based company, which provides wealth management and advisory services to high net-worth clients in China, said in a statement today that its revenue in the first quarter dropped more than 35 percent to $41.9 million.
The company also reported a net loss of $1.8 million, or 11 cents per share, in contrast to an income of $16.7 million in the same period of 2018.
"Jupai's first quarter 2019 operating results remained under pressure," said Jianda Ni, the company's chairman and chief executive officer in the report.
"In addition to fewer working days resulting from the Chinese New Year holiday, weaker than expected investor confidence amid the unsettled US-China trade conflict contributed to the headwinds we faced in the quarter," Ni added.
Jupai said it had 1,279 active clients in 2018 and the aggregate value of wealth management products it distributed was $400 million, down 74.5 percent year-over-year.
Total assets under management as of March 31, 2019, were RMB53.0 billion (US$7.9 billion), a 2.8 percent decrease from March 31, 2018.
Looking ahead to 2019, Ni remains optimistic. "Given the macro-economic uncertainties, we believe investor confidence will return gradually beginning in late 2019. Amid the prolonged market downturn, Jupai will remain dedicated to executing on our three strategies to optimize our business."
"We are confident that Jupai will be well-positioned to seize opportunities as the market recovers," he added.
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