Jupai Posts Poor Revenue in Q2; Shares Drop
The stock of Jupai Holdings Ltd. (NYSE: JP) was down 4%, at $1.86 per American depositary share, in midday trading Friday after the company posted weak revenue and narrowed losses for the second quarter.
The third-party wealth management service provider said in a statement today that in the three months through June revenue was $15.3 million, a decrease of 41.7% year-over-year. Jupai attributed the decline to lower one-time commissions and recurring management fees.
Moreover, its net loss attributable to ordinary shareholders was $1.5 million compared with $8.75 million in the same period in 2019.
Jianda Ni, the chairman and chief executive officer of Jupai, noted "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."
He added, "We remain confident in the long-term outlook for Jupai and China's wealth management industry and will continue to focus on controlling costs, providing high-quality products, and optimizing our risk control system."
Based in Shanghai, Jupai caters to high-net-worth individuals in China, according to the company. As of December, Jupai had 51 client centers covering 43 cities with 2,973 number of active clients, according to its report.
In February, Jupai announced a $10 million share repurchase program. The company said the plan would be open for 24 months.
Looking forward, the company expects the control of costs will help to further improve its bottom-line and enhance operating efficiencies in the coming quarters.