Puyi Inc. (“Puyi,” “we” or the “Company”) (NASDAQ: PUYI), a leading
third-party wealth management service provider in China focusing on
the affluent and emerging middle class population, today announced
its unaudited financial results for the first half of its fiscal
year 2023 from July 1, 2022 to December 31, 2022
(the “reporting period”).
FINANCIAL HIGHLIGHTS FOR THE FIRST HALF OF THE FISCAL
YEAR 2023
- Net revenues decreased by 32.6% to RMB68.4 million (US$9.9
million) from RMB101.5 million for the same period of the fiscal
year 2022; and
- Net loss decreased by 19.9% to RMB31.5 million (US$4.6 million)
from RMB39.2 million for the same period of the fiscal year 2022.
The decrease of net loss was mainly due to a series of cost control
measures adopted by us in a timely manner, which has achieved
preliminary success.
Mr. Yong Ren, Chief Executive Officer of Puyi, commented,
“In the first half of the fiscal year 2023, due to the impact of
COVID-19 pandemic, China’s economy has not recovered prominently
and the capital markets have been volatile, which led to weak
investment sentiments and poor investor experiences. Despite dismal
conditions, our management team strategically maintained our focus
to reduce costs and increase efficiency, while strengthened the
internal training to enhance professional skills. The Company was
able to reduce its selling expenses and general and administrative
expenses by 28% period-on-period. Furthermore, the Company
continued to strategically reinforce its focus on wealth management
and inheritance services for wealthy and high-net-worth clients. In
particular, the Company’s trust consulting services achieved great
progress, with the number of completed trust consulting service
projects increased by more than five times period-on-period.
In light of the relaxation of the pandemic prevention and
control policy at the end of 2022, we believe that China’s economy
will experience an upward growth in 2023. The introduction of
registration-based IPO system will also reform China’s capital
market ecosystem. As investor confidence recovers and thrives, we
believe that the murky wealth management industry is expected to
improve continuously in 2023.
Our Company plans to focus on the following strategies: (i)
enhance our investment, research and service capabilities for fund
products; increase our marketing and promotion efforts of fund
products at an appropriate time; and seize new growth opportunities
while maintaining the existing businesses; (ii) continue to improve
the quality of our family trust services for wealthy and
high-net-worth clients by increasing operational efficiency through
our self-developed family office system; introduce and optimize our
products and services according to client needs; scale our client
base through expanding corporate channels; and strengthen our
Company’s B2B service capabilities through optimization of IT
system; and (iii) observe the upstream and downstream wealth
management industry chain, and seek opportunities for business
collaborations and mergers and acquisitions.
‘Past a fallen ship, one thousand sail onward; for a sick tree,
ten thousand thrive by spring.’ Post-COVID era, the wealth
management industry is expected to embrace a long-term sustaining
growth cycle. The Company’s management will pursue a business
strategy of stable growth, while calmly responding to risks and
challenges and seizing market opportunities. We are very confident
in the future development of our Company.”
FINANCIAL RESULTS FOR THE FIRST HALF OF THE FISCAL YEAR
2023
Net revenues
Net revenues for the first half of the fiscal year 2023 were
RMB68.4 million (US$9.9 million), representing a 32.6% decrease
from RMB101.5 million for the same period of the fiscal year
2022.
- Net revenues generated from our wealth management services for
the first half of the fiscal year 2023 were RMB53.5 million (US$7.8
million), representing a 43.2% decrease from RMB94.2 million for
the same period of the fiscal year 2022. In particular,
- Net revenues generated from the distribution of privately
raised fund products for the first half of the fiscal year 2023
were RMB17.8 million (US$2.6 million), representing a 54.1%
decrease from RMB38.8 million for the same period of the fiscal
year 2022. The decrease was primarily due to (i) the fact that
investors were affected by the volatile market with increased
uncertainty of the future, leading to negative sentiments for
privately raised fund products and other high-risk products and
their willingness to redeem funds has increased. Therefore, during
the reporting period, the transaction value and outstanding daily
balance of our privately raised fund products decreased, resulting
in a decrease in commission income (including management fees); and
(ii) performance-based fees of RMB1.8 million recognized in the
first half of the fiscal year 2023, as compared to RMB3.0 million
in the first half of the fiscal year 2022, representing a 41.7%
decrease; and
- Net revenues generated from the distribution of publicly raised
fund products for the first half of the fiscal year 2023 were
RMB35.8 million (US$5.2 million), representing a 35.5% decrease
from RMB55.5 million for the same period of the fiscal year 2022.
The decrease was primarily due to the influence of global
geopolitics and COVID-19-related restrictive measures, which led to
the long-term depression of the A-share market and the low
investment confidence of the investors, resulting in the decrease
in transaction value of publicly raised fund products and the
reduction in commission income. Now the COVID-19 control measures
have been relaxed and the domestic economy and financial markets
have entered a recovery period, we are confident that with the
recovery of China’s economy, the transaction value of publicly
raised fund products will be restored soon.
- Net revenues generated from our asset management services for
the first half of the fiscal year 2023 were RMB1.2 million (US$0.2
million), representing a 68.7% decrease from RMB3.7 million for the
same period of the fiscal year 2022. The decrease was primarily due
to a 95.7% decrease in performance-based fees generated by our
actively managed fund of funds to RMB76,000 (US$11,000) for the
first half of the fiscal year 2023, from RMB1.8 million for the
same period of the fiscal year 2022.
- Net revenues generated from our insurance consulting services
for the first half of the fiscal year 2023 were RMB7.0 million
(US$1.0 million), representing a 112.7% increase from RMB3.3
million for the same period of the fiscal year 2022. The increase
was primarily due to the fact that we provided consulting services
to more clients, and the insurance premium had increased
accordingly.
- Net revenues generated from our other services for the first
half of the fiscal year 2023 were RMB6.7 million (US$1.0 million),
representing a 2,485.8% increase from RMB0.3 million for the same
period of the fiscal year 2022. Revenues from other services for
the first half of the fiscal year 2023 mainly came from consulting
services related to trust and family wealth inheritance provided to
clients.
Operating costs and expenses
Operating costs and expenses for the first half of the fiscal
year 2023 were RMB106.7 million (US$15.5 million), representing a
28.8% decrease from RMB149.9 million for the same period of the
fiscal year 2022. In particular,
- Cost of sales for the first half of the fiscal year 2023 were
RMB14.6 million (US$2.1 million), representing a 33.8% decrease
from RMB22.1 million for the same period of the fiscal year 2022.
The decrease was primarily due to (i) a decrease in transaction
fees as a result of the decrease in the technical support service
expense paid to a third-party service provider related to publicly
raised fund products since we switched to use our own technology;
and (ii) a decrease in commission expenses as a result of the
decrease in the distribution of privately raised fund products,
partially offset by an increase in cost as a result of the increase
in insurance consulting services and other services;
- Selling expenses for the first half of the fiscal year 2023
were RMB42.1 million (US$6.1 million), representing a 45.3%
decrease from RMB77.1 million for the same period of the fiscal
year 2022. This decrease was due to (i) a reduction of labor costs
caused by staff optimization; (ii) a change in our marketing focus
to cultivate relationships with existing clients from our previous
marketing focus on increasing our new client base, resulting in the
reduction of marketing expenses; and (iii) a decrease in rental
expenses as a result of the fact that we further focused on our
advantageous areas and cutting unnecessary branch offices;
partially offset by the increase in lease termination loss
including disposal of leasehold improvements and one-off penalty
for early termination of branch offices; and
- General and administrative expenses for the first half of the
fiscal year 2023 were RMB50.0 million (US$7.2 million) and remained
stable compared to RMB50.8 million for the same period of the
fiscal year 2022.
Investment Loss
Investment loss for the first half of the fiscal year 2023 was
RMB0.2 million (US$26,000), compared to nil for the same period of
the fiscal year 2022. Investment loss for the reporting period
mainly arose from a short-term investment, which we redeemed in
time according to the market to avoid the expansion of loss.
Interest Income
Interest income for the first half of the fiscal year 2023 was
RMB4.6 million (US$0.7 million), representing a 12.0% increase from
RMB4.1 million for the same period of the fiscal year 2022. We used
idle cash effectively and increased the principal amount of loans
from RMB30.0 million in the first half of the fiscal year 2022 to
RMB100.0 million in the first half of the fiscal year 2023 to an
unrelated third party with good cooperation history to generate
more interest income to make up for our investment loss. The
short-term loan receivables as of December 31, 2022 is expected to
be fully repaid by the third party before June 30, 2023.
Sundry Income
Sundry income for the first half of the fiscal year 2023
was RMB0.7 million (US$0.1 million), compared to sundry income of
RMB1.7 million for the same period of the fiscal year 2022. The
decrease of sundry income was primarily due to a decrease in
government grants.
Income Tax Benefit
We recognized income tax benefit of RMB1.7 million (US$0.2
million) for the first half of the fiscal year 2023 due to deferred
tax assets mainly generated from net loss, while we recognized
income tax benefit of RMB3.4 million for the same period of the
fiscal year 2022.
Net Loss
We recognized a net loss of RMB31.5 million (US$4.6 million) for
first half of the fiscal year 2023, representing a 19.9% decrease
from RMB39.2 million for the same period of the fiscal year 2022.
The decrease of net loss was mainly because we took a series of
cost control measures in a timely manner, which has achieved
preliminary success.
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS for the first half of the fiscal
year 2023 was RMB0.522 (US$0.076) and RMB0.522 (US$0.076),
respectively. We recognized basic and diluted loss per ADS of
RMB0.651 and RMB0.651, respectively, for the same period of the
fiscal year 2022.
Cash, Cash Equivalents and Restricted Cash
As of December 31, 2022, we had cash, cash equivalents and
restricted cash of RMB91.7 million (US$13.3 million), and we had
cash, cash equivalents and restricted cash of RMB313.1 million as
of June 30, 2022. The decrease in cash, cash equivalents and
restricted was mainly due to the decrease in restricted cash and
the increase in short-term loans receivables.
CONFERENCE CALL
Senior management will host a bilingual conference call in
English and Chinese to discuss the Company’s unaudited financial
results and business development for the first half of the fiscal
year 2023 ended December 31, 2022.
Details for the conference call are as follows:
Date/Time: |
Monday, March 20, 2023 at 9:00 PM U.S. Eastern Daylight Time |
|
(Tuesday, March 21, 2023 at 9:00
AM Beijing/Hong Kong Time) |
Conference Title: Puyi Inc. Six Months Ended December 31, 2022
Earnings Call
Please pre-register online in advance to join the conference
call by navigating to the link provided below and dial in 15
minutes before the call is scheduled to begin. Conference call
details will be provided upon registration. Conference call
pre-registration link:
https://register.vevent.com/register/BI42a996d0a98e4646ae78f03eb127cceb.
Additionally, a live and archived webcast of the
conference call will be available at Puyi’s investor relations
website https://ir.puyiwm.com/news-events/events.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
first half of the fiscal year 2023 are stated in RMB. This
announcement contains currency conversions of certain RMB amounts
into US$ 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 RMB6.8972 to US$1.00, the effective
central parity rate for December 31, 2022 as set forth in the H.10
statistical release of the Federal Reserve Board.
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 China;
reputation and brand; the impact of competition and pricing;
government regulations; fluctuations in general economic and
business conditions in China and the international markets the
Company serves and assumptions underlying or related to any of the
foregoing and other risks contained in reports filed by the Company
with the Securities and Exchange Commission. For these
reasons, among others, investors are cautioned not to place undue
reliance upon any forward-looking statements in this press release.
Additional factors are discussed in the Company’s filings with the
U.S. Securities and Exchange Commission, which are available for
review at www.sec.gov. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof.
Puyi Inc.
Unaudited Condensed Consolidated
Statements of Financial Position(in
thousands)
|
|
June 30, 2022 |
|
|
December 31, 2022 |
|
|
|
Audited |
|
|
Unaudited |
|
|
|
RMB’000 |
|
|
RMB’000 |
|
|
USD’000 |
|
ASSETS: |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
|
|
194,259 |
|
|
|
|
75,233 |
|
|
|
|
10,908 |
|
|
Restricted cash |
|
|
118,796 |
|
|
|
|
16,434 |
|
|
|
|
2,383 |
|
|
Accounts receivable, net |
|
|
59,507 |
|
|
|
|
53,845 |
|
|
|
|
7,807 |
|
|
Short-term investments |
|
|
5,000 |
|
|
|
|
- |
|
|
|
|
- |
|
|
Other receivables and current
assets |
|
|
14,298 |
|
|
|
|
8,926 |
|
|
|
|
1,294 |
|
|
Short-term loans
receivable |
|
|
- |
|
|
|
|
103,557 |
|
|
|
|
15,014 |
|
|
Amount due from related
parties |
|
|
2,895 |
|
|
|
|
7,761 |
|
|
|
|
1,125 |
|
|
Total current
assets |
|
|
394,755 |
|
|
|
|
265,756 |
|
|
|
|
38,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
9,156 |
|
|
|
|
5,931 |
|
|
|
|
860 |
|
|
Intangible assets, net |
|
|
1,114 |
|
|
|
|
1,036 |
|
|
|
|
150 |
|
|
Long-term prepayments |
|
|
551 |
|
|
|
|
620 |
|
|
|
|
90 |
|
|
Deferred tax assets, net |
|
|
23,978 |
|
|
|
|
26,403 |
|
|
|
|
3,828 |
|
|
Right-of-use assets |
|
|
34,382 |
|
|
|
|
24,556 |
|
|
|
|
3,560 |
|
|
Total
assets |
|
|
463,936 |
|
|
|
|
324,302 |
|
|
|
|
47,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
11,668 |
|
|
|
|
14,597 |
|
|
|
|
2,116 |
|
|
Investors’ deposit |
|
|
118,796 |
|
|
|
|
16,434 |
|
|
|
|
2,383 |
|
|
Other payables and accrued
expenses |
|
|
19,445 |
|
|
|
|
22,529 |
|
|
|
|
3,266 |
|
|
Lease liabilities,
current |
|
|
11,889 |
|
|
|
|
8,857 |
|
|
|
|
1,284 |
|
|
Income taxes payable |
|
|
3,536 |
|
|
|
|
1,614 |
|
|
|
|
235 |
|
|
Advance receipts from related
parties |
|
|
1,500 |
|
|
|
|
- |
|
|
|
|
- |
|
|
Amount due to related
parties |
|
|
292 |
|
|
|
|
236 |
|
|
|
|
34 |
|
|
Total current
liabilities |
|
|
167,126 |
|
|
|
|
64,267 |
|
|
|
|
9,318 |
|
|
Other tax liabilities,
non-current |
|
|
13,500 |
|
|
|
|
13,500 |
|
|
|
|
1,957 |
|
|
Lease liabilities,
non-current |
|
|
23,259 |
|
|
|
|
17,587 |
|
|
|
|
2,550 |
|
|
Total
liabilities |
|
|
203,885 |
|
|
|
|
95,354 |
|
|
|
|
13,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares |
|
|
600 |
|
|
|
|
600 |
|
|
|
|
87 |
|
|
Additional paid-in
capital |
|
|
224,694 |
|
|
|
|
224,694 |
|
|
|
|
32,578 |
|
|
Statutory reserves |
|
|
23,314 |
|
|
|
|
23,314 |
|
|
|
|
3,380 |
|
|
Retained earnings |
|
|
11,836 |
|
|
|
|
(19,618 |
) |
|
|
|
(2,845 |
) |
|
Accumulated other
comprehensive income |
|
|
(393 |
) |
|
|
|
(42 |
) |
|
|
|
(6 |
) |
|
Total
equity |
|
|
260,051 |
|
|
|
|
228,948 |
|
|
|
|
33,194 |
|
|
Total liabilities and
equity |
|
|
463,936 |
|
|
|
|
324,302 |
|
|
|
|
47,019 |
|
|
Puyi Inc.
Unaudited Condensed Consolidated
Statements of Operations and Comprehensive
Loss(In thousands, except for
percentages)
|
|
Six months ended December 31, |
|
|
|
2021 |
|
|
2022 |
|
|
|
|
|
|
RMB’000 |
|
|
RMB’000 |
|
|
USD’000 |
|
|
Change (%) |
|
Net
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
|
94,232 |
|
|
|
53,546 |
|
|
|
7,763 |
|
|
|
(43.2 |
%) |
Asset management |
|
|
3,704 |
|
|
|
1,161 |
|
|
|
168 |
|
|
|
(68.7 |
%) |
Insurance consulting |
|
|
3,290 |
|
|
|
6,999 |
|
|
|
1,015 |
|
|
|
112.7 |
% |
Other services |
|
|
260 |
|
|
|
6,723 |
|
|
|
975 |
|
|
|
2,485.8 |
% |
Total net
revenues |
|
|
101,486 |
|
|
|
68,429 |
|
|
|
9,921 |
|
|
|
(32.6 |
%) |
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
(22,064 |
) |
|
|
(14,601 |
) |
|
|
(2,117 |
) |
|
|
(33.8 |
%) |
Selling expenses |
|
|
(77,085 |
) |
|
|
(42,135 |
) |
|
|
(6,109 |
) |
|
|
(45.3 |
%) |
General and administrative expenses |
|
|
(50,764 |
) |
|
|
(49,952 |
) |
|
|
(7,242 |
) |
|
|
(1.6 |
%) |
Total operating costs
and expenses |
|
|
(149,913 |
) |
|
|
(106,688 |
) |
|
|
(15,468 |
) |
|
|
(28.8 |
%) |
Loss from
operations |
|
|
(48,427 |
) |
|
|
(38,259 |
) |
|
|
(5,547 |
) |
|
|
(21.0 |
%) |
Other
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
4,088 |
|
|
|
4,579 |
|
|
|
664 |
|
|
|
12.0 |
% |
Investment loss |
|
|
- |
|
|
|
(176 |
) |
|
|
(26 |
) |
|
|
N/A |
|
Sundry income |
|
|
1,674 |
|
|
|
723 |
|
|
|
105 |
|
|
|
(56.8 |
%) |
Loss before income taxes |
|
|
(42,665 |
) |
|
|
(33,133 |
) |
|
|
(4,804 |
) |
|
|
(22.3 |
%) |
Income tax benefit |
|
|
3,421 |
|
|
|
1,679 |
|
|
|
243 |
|
|
|
(50.9 |
%) |
Net loss |
|
|
(39,244 |
) |
|
|
(31,454 |
) |
|
|
(4,561 |
) |
|
|
(19.9 |
%) |
Puyi Inc.
Unaudited Condensed Consolidated
Statements of Operations and Comprehensive
Loss (Continued)(In thousands, except for shares,
income per share, income per ADS)
|
|
Six months ended December 31, |
|
|
2021 |
|
2022 |
|
|
RMB’000 |
|
RMB’000 |
|
USD’000 |
Net loss per
share: |
|
|
Basic and diluted |
|
|
(0.434 |
) |
|
|
(0.348 |
) |
|
|
(0.050 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per
ADS: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.651 |
) |
|
|
(0.522 |
) |
|
|
(0.076 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
90,472,014 |
|
|
|
90,472,014 |
|
|
|
90,472,014 |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(39,244 |
) |
|
|
(31,454 |
) |
|
|
(4,561 |
) |
Other comprehensive income
(loss) |
|
|
(160 |
) |
|
|
351 |
|
|
|
51 |
|
Total Comprehensive
loss |
|
|
(39,404 |
) |
|
|
(31,103 |
) |
|
|
(4,510 |
) |
Puyi Inc.
Unaudited Condensed Consolidated
Statements of Cash Flows (In
thousands)
|
|
Six months ended December 31, |
|
|
2021 |
|
|
2022 |
|
|
|
RMB’000 |
|
RMB’000 |
|
USD’000 |
Net cash used in operating activities |
|
|
(9,301 |
) |
|
|
(125,484 |
) |
|
|
(18,193 |
) |
Net cash used in investing
activities |
|
|
(8,359 |
) |
|
|
(96,255 |
) |
|
|
(13,956 |
) |
Net cash provided by financing
activities |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net decrease in cash and cash
equivalents, and restricted cash |
|
|
(17,660 |
) |
|
|
(221,739 |
) |
|
|
(32,149 |
) |
Cash, cash equivalents
and restricted cash at beginning of period |
|
|
332,782 |
|
|
|
313,055 |
|
|
|
45,389 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
(160 |
) |
|
|
351 |
|
|
|
51 |
|
Cash, cash equivalents
and restricted cash at end of period |
|
|
314,962 |
|
|
|
91,667 |
|
|
|
13,291 |
|
Contacts:
Puyi Inc.
Jing He, GM of Financial Reporting Department
Email: ir@puyiwm.com
Tel: +86 20-28866499
Grafico Azioni Puyi (NASDAQ:PUYI)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Puyi (NASDAQ:PUYI)
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Da Giu 2023 a Giu 2024