This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk00: Ladies and gentlemen, welcome to PUI, Inc.' 's first half of the fiscal year 2022 earnings conference call. At this time, all participants are in listen-only mode. Following management's prepared remarks, there will be a Q&A session. For your information, today's conference call is being recorded. This conference call is also being broadcasted live over the internet and will be available for replay purposes on the company's website. I'd like to turn the meeting over to your first speaker today, Ms. Jing He. who is General Manager of Financial Reporting Department. Thank you. Please go ahead.
spk01: Thank you, Operator. Good evening. Welcome to our earnings conference call for the first half of the fiscal year 2022. Before we continue, please know that the discussion today will contain forward-looking statements made under the safe harbor provisions of the United States Private Security Litigation Reform Act of 1995. The accuracy of these statements may be impacted by a number of risks and uncertainties that could cause our actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but not limited to, those highlighted in our filings with the SEC, including our 20F and registration document F3. We do not undertake any obligation to update this forward-looking information, except as required under the applicable laws. Joining us today are our Chief Executive Officer, Mr. Yong Ren, and Chief Financial Officer, Mr. An Ning Hu. Mr. Ren will first walk you through our business and financial conditions of the first half of the fiscal year 2022, and then there will be a Q&A section. Now I will turn the call over to Mr. Ren.
spk02: 我将给各位介绍2022财年上半年公司的业务概况和财务概况, 并谈谈管理层对未来的展望。 稍后我们将会有一个问答环节,就是接受大家的提问。 Good evening, everyone. Thank you for joining us today on the conference call for the first half of the fiscal year 2022. Here with me is our Chief Financial Officer, Mr. An Ning Hu. We will begin today's call with an overview of financial and operational results
spk01: of our first half of the fiscal year 2022, then followed by a brief discussion of our business outlook for the future. We will take your corrections after the prepared remarks.
spk02: 首先,我將講述公司的業務概況。 2022財年上半年,全球新冠疫情仍在繼續蔓延, 中國GDP增速亦有所放緩。 在多層不利因素影響下,公司管理層竭盡全力, First of all, let's take a look at our business development in the reporting period.
spk01: During the first half of the fiscal year 2022, the COVID-19 pandemic kept spreading globally, and the growth of China's GDP was also lowering its speed. Under the influence of all those unfavorable circumstances, the management made great effort, and we still had an overall growth during this reporting period. During the first half of the fiscal year 2022, we generated total revenue of RMB 101.5 million. increasing by 21.5% as compared to the same period of the fiscal year 2021, of which the revenue generated from the sales of public-raised fund products increased by 5.3%, and the revenue generated from the sales of privately-raised fund products increased by 91.6%. Our progress during the reporting period is listed as follows.
spk02: As of December 31, 2021, the supply of public fund products is 87.1 billion yuan, which is 48.1% higher than the 58.8 billion yuan of the same period last year. At the same time, the total number of public fund customers increased from 315,000 people in the same period last year to 21.6% and reached 383,000 people. The scale of the total number of customers is much higher than that of the number of customers. The scale of the total number of customers has continued to increase. The blood-sucking effect of the company's hard-pressed fund set-up has emerged. Among them, the public fund combination that the company actively manages is the core product of the public fund product. The share of the public fund is 72.4 billion yuan. The share of the public fund is 83.1%. The share of the public fund is 36,000 people. The share of the public fund is 87.7%. The share of the public fund is 8.8 billion yuan. The share of the public fund is 69.7%.
spk01: First, our transition to standardized products was smooth, and the outstanding ending balance of various products continued to grow steadily. As of December 31, 2021, the outstanding ending balance of public-raised fund products amounted to RMB 8.7 billion, increased by 48.1%, from RMB 5.9 billion as of December 31, 2020. Meanwhile, as of December 31, 2021, the number of active clients for our public-raised fund products was 383,000, increasing by 21.6% from 315,000 as of December 31, 2020. In the first half of the fiscal year 2022, The growth of the outstanding ending balance of our public raise fund products outpaced the growth of the number of active clients for our public raise fund products. And the outstanding ending balance of our public raise fund products per client continued to increase, demonstrating the snowball effect brought by the automatic investment on a dollar cost averaging based management system, highly recommended by the company, particularly Portfolios of public-raised fund products are our core products. As of December 31, 2021, the outstanding ending balance of our portfolios of public-raised fund products amounted to RMB $7.2 billion, accounting for 83.1% of the total outstanding ending balance of our public-raised fund products as of the same day. And the number of active clients for our portfolios of public-raised fund products worth $336,000 as of December 31, 2021, accounting for 87.7% of the total number of our active clients for our public-raised fund products as of the same day. In the first half of the fiscal year 2022, the transaction value of privately-raised fund products, all of which were privately-raised security investment fund products with RMB 882.6 million, increasing by 69.7% as compared to the same period of the fiscal year 2021, demonstrating our effort in cross-selling private raised fund products to clients of our public raised fund products.
spk02: Letting every family have a financial asset allocation financial advisor is our original intention. Professional financial advisors and general client teams use the company's powerful asset allocation platform system to effectively expand the financial advisor's personal service capability. In the first half of 2022, the core goal is to strengthen the ability of family financial asset allocation. In the city branch, we continue to optimize the professional financial advisor recruitment system, training system, and operating system construction. The growth of the financial team is steady, and productivity is also gradually emerging. At the same time, we also carry out a timely optimization of the division of companies that do not meet the expected performance, ensuring the long-term health and stability of the company's development. In terms of the total number of customers, we accelerate the selection and cultivation of the total number of customers. The total number of customers has a total number of customers from 7.7 people on December 31, 2022,
spk01: Second, we optimize the development strategy of our branch office and accelerate the professionalization and specialization of financial advisors. Our vision is making every family in China have its own financial asset allocation advisors, which can be achieved by a large group of our professional financial advisors and C clients. by leveraging the company's powerful asset allocation platform to effectively expand their personal service capabilities. For the first half of the fiscal year 2022, our target was to strengthen our capability of family financial asset allocation. To achieve this target, on the one hand, we continue to optimize our recruitment system, training system, and operation system for professional financial advisors to facilitate the expansion of our financial advisor team and to further grow our business. Meanwhile, we assess and optimize our geographical focus from time to time to ensure our sustainable development. On the other hand, we also accelerate the selection, classification, and training process of our SIG clients. resulting in the increase of the number of active clients per sick client from 7.7 as of December 31, 2020 to 12.3 as of December 31, 2021.
spk02: The company has already started family office and service construction in October 2022. To date, the company has established cooperation with信通公司,保险公司, 教育服务机构,税务事务所, 律师事务所等, 初步完成了对大众富裕家庭的保险进行托, 家族信托,海外教育,税务服务等 专业服务及运营体系的搭建布局。 截此2021年12月31日, Third, we took the initiative in the development of our family office business, the market demand of which is strong. Based on the strong demand,
spk01: demand from mass affluent families in China for wealth preservation and appreciation, inheritance, and their related and service. We launched family office service beforehand in October 2020. Till now, we have established cooperation with trust companies, insurance companies, education service providers, tax firms, and law firms, and initially complete the setup of our professional service and operation system for insurance premium trust, family trust, overseas education, tax service, and other service for mass affluent families. As of December 31, 2021, we have provided insurance trust and family trust service to more than 60 families of high net worth clients. We believe that with the increase of partners and clients and the enhancement of the Perfectional operation capabilities, our family office service will become another growth drive for our future wealth management service business.
spk02: We insist that financial industry should be good, responsible, and warm. As we develop our business, we are always dedicated to our social responsibility. In October 2021, we visited various schools in Ganji, Tibetan,
spk01: autonomous region in Sichuan province to provide vacant cotton clothes and school supplies to students and teachers, hoping that at an altitude of 4,520 meters, they would not directly feel the warmth from us.
spk02: Next, I will briefly discuss our financial condition for the first half of the fiscal year 2022. For this period, net revenue increased period-on-period by 21.5%, from RMB 68.5 million to RMB 101.5 million.
spk01: US dollar 15.9 million. Now next turn to each individual business line.
spk02: Last year, we stopped selling non-financial financial products in October 2019. This year, we have no non-financial financial products in other financial products.
spk01: First, our wealth management service. Net revenues generated from our wealth management service increased period on period by 28.8% from RMB 73.2 million to RMB 94.2 million, US dollar 14.8 million. In particular, net revenues generated from distribution of public raised fund products for the reporting period were RMB 55.5 million. USD 8.7 million, representing a 5.3% period-on-period increase from RMB 52.7 million. The increase was primarily due to an increase in management fee from the outstanding daily balance of public-raised fund products. Net revenues generated from distribution of private-raised fund products for the reporting period were RMB 38.8 million, USD 3.1 million. representing a 91.6% period-on-period increase from RMB 20.2 million. The increase was primarily due to, first, the increase in transaction value of privately-raised fund products, and second, performance-based fees of RMB 3.0 million recognized in the first half of the fiscal year 2022, as compared to nil in the first half of the fiscal year 2021. Net revenues generated from distribution of other financial products for the reporting period were nil, compared to RMB $299,000 for the same period of the fiscal year 2021. The decrease was primarily because we focused on the distribution of fund products and ceased to offer new exchange-administered products since October 2019, and we had no existing exchange-administered products for this reporting period. 二,接着是資產管理業務。
spk02: Second, our asset management service.
spk01: Net revenues generated from asset manual service for the reporting period were RMB 3.7 million, USD 0.6 million, representing a 64.2% period-on-period decrease from RMB 10.3 million. The decrease was primarily due to a 74.3% decrease in performance-based fees generated by our active fund to RMB 1.8 million. US dollar 0.3 million for the first half of the fiscal year 2022. From RMB 6.9 million for the same period of the fiscal year 2021.
spk02: 三,最后是其他业务,其他服务业务。 本期其他服务收入为人民币355万元。 去年同期无其他服务收入。 其他服务收入主要是为一家保险经纪公司提供引流推荐服务。 Last, our other service.
spk01: Net revenues generated from other service for the reporting period were RMB 3.5 million, US dollar 0.6 million, and there was no other service revenue for the same period of the fiscal year 2021. Other service revenues of the reporting period were primarily service fees from marketing service for an insurance agency.
spk02: Last but not the least, let's elaborate on our strategy planning and outlook for the future. The fiscal year 2022
spk01: We will focus on reducing losses and achieving profit as soon as possible as our core business goal. In terms of market development, professional platform, and elite entrepreneurship as our basic strategy to fully promote the cooperation with and cultivation of independent office and independent family office, our next major business initiatives are as follows.
spk02: In 2022, Cheng's branch will stick to its core goals and continue to maintain a deep-rooted strategy. The first is to raise the standard of employee finance, strengthen the training and assessment of pure employee finance, and use manpower as the core assessment of finance. The second is to strongly develop independent work in Cheng's branch. yúqí shì zhú lì jiā bàn gōngzuò shì, kāi zhǎn yí zhàn shì de jiā tǐ jīn rōng zhǐ chǎn pèi zhǐ fú.
spk01: First, we will take big even as our core goal, fully promote the construction of cooperation with independent office, and comprehensively upgrade and optimize the branch office. For year 2022, our branch office will adhere to the core goal of profitability, and we will continue to finely and dedicatedly develop our existing branch office. First, we will improve the recruitment standard of in-house financial advisors, strengthen the training and assessment of existing in-house financial advisors, and take per capita production capabilities as our core evaluation index of our in-house financial advisors. Second, we will vigorously develop cooperation with independent office based on branch office. especially with independent family offices, which are more professional than independent offices, and carry out one-stop family financial asset allocation service.
spk02: We will continue to introduce excellent credit companies in China and abroad and expand the scope of our business. Previously, we have reached tax cooperation with Bi Ma Wei and reached study education cooperation with American Education. This fiscal year, we will provide legal services and health management services to high-quality law firms and health management companies according to customer needs. Thirdly, 在专业能力提升方面, 公司通过培训及考核手段, 要求所有的投资顾问及前线理财师 都必须掌握保险及信托、家族信托、 二类资产配置等专业知识, 全面把握家族办公室的黄金窗口期。 We will strengthen our professional capability and rigorously promote family office business. After more than one year of preparation,
spk01: we have established the basic service capabilities of our family office service. The operational efficiency and professional empowerment output to the clients still need to be satisfied our internal requirements. In the fiscal year 2022, we plan to improve our family office service from several aspects. First, in terms of operation system construction, on March 3rd, 2022, we officially started the construction of family office business operation system. Such operation system is expected to be launched on May 30, 2022. The operation system is expected to significantly improve the operational efficiency of our family trust service. Second, we target to strengthen the connectivity between upstream and downstream market participants. Based on the existing cooperation with Beijing Trust and Yuecai Trust will continue to cooperate with more domestic and international reputational trust companies to expand the scope of our service. Previously, we have established cooperation with KPMG in terms of tax service and with Mercer Education in terms of overseas education service. Fiscal year 2022, we will select high-quality law firms to provide legal service and health management companies to provide health service. According to the needs of our clients. Third, terms of professional ability improvement. We require all investment advisors and frontline financial advisors to combine good professional knowledge, such as insurance trust, family trust, and large asset allocation for training and assessment to fully grasp the rapid growth window of family office service. 三,尽快完成机构业务系统建设。
spk02: to increase the number of new business growth points. Through a year of market research and system construction, the institutional customer center has established an effective business model. In 2022, the block will be integrated into the institutional system and fully expanded into the market. In terms of reserve customer resources, we will rely on the management of the company, managing the company, persuading the company,
spk01: Third, we will complete the construction of institutional business operation system as soon as possible and try to make this business a new growth driver. For one year's market research and system construction, our institutional client department has to establish an effective business model. In fiscal year 2022, our institutional service business will strive to develop the market with the help of the institutional master system operation system for our institutional business. In terms of existing client resource, we rely on our own partners, such as public and private fund managers, asset management companies, security companies, and regulatory banks to explore cooperation opportunities. In terms of external client expansion, we have determined to focus on bank customers, especially small and medium-sized municipal commercial banks and rural commercial banks, which lack public fund trading system but have public fund investment needs. Institutional business has great business potentials in terms of quantity, quality, and income of clients.
spk02: continue to focus on the existing public-private group and product strategy, support the public-private fund sales of gold and silver units, and train customers' long-term product habits, to respond to short-term strong fluctuations in the market, and improve customer investment experience. In terms of private products, to independently manage the supply and the external introduction of new private products, ensure that the main private strategy of all types of goods is priced by two types, Fourth, we will further diversify product offerings based on client needs.
spk01: In the fiscal year 2022, we will continue to adhere to the strategy of standardized products. In terms of public-raised fund products, we will continue to focus on the existing portfolio of public-raised fund product strategy. Supplemented by the sale of high-quality single, closed, and public-raised fund products in order to cultivate clients' habit of holding products for a long period, deal with short-term shop in the market, and improve clients' investment experience. In terms of private-raised fund products, we'll continue to increase our activity, manage fund-on-fund products, and cooperate with external leading private-raised fund product providers simultaneously to ensure that each privately raised fund strategy has at least two or more products available in our offerings. At the same time, we will strive to improve our efficiency and effectiveness in matching the investment needs of trust clients with our product offerings.
spk02: 五,配合战略,IT系统推陈出新,持续优化完善,2022财年。 We will continue to optimize and improve our IT system to keep our IT system updated and innovated.
spk01: In the fiscal year 2022, in order to meet our strategy and development needs, we plan to further enhance our technology platform, focusing on the construction of four systems, including the Pui Fund app, institutional business operation system, family office business operation system, and comprehensive asset allocation platform, and optimizing Pui Business School app, free cloud service, and other systems.
spk02: Neil? In the year 2022, the company will continue to strictly control the growth of cost costs. In terms of human resources, the core goal is to increase the efficiency of the human resources. The implementation of the end-of-time elimination system will greatly improve the ability of employees to get a job. The growth of human resources in the entire year will be controlled at 5%. Second, in terms of administrative management costs, we will promote the reduction of labor costs, Sixth and the last,
spk01: We will optimize our organization, streamline our organization, and strictly control unusual growth of expense. In the fiscal year 2022, we will continue to strictly control cost growth, first in terms of human resource cost. With the improvement of per capita efficiency as our core goal, we will implement the rank and gain mechanism to vigorously improve the competency of employees. and control the growth of labor costs of administration staff within 5% throughout the year. Second, in terms of administrative expenses, we will promote diligence and reasonings to control travel and entertainment expense and prohibit abnormal large expense. The pandemic will eventually dissipate, and the world economic will eventually regain its growth. We'll continue to do the hard and bright things. and to be a friend of time despite of short-term hardships. Our management team will always strive to create greater value for our clients, shareholders, and employees. And that ends with the prepared inbox. Now we will open for questions. Operator, please.
spk00: Thank you. To ask a question, you will need to press star 1 on your touchtone telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Once again, that's star one to ask a question at this time. And as a reminder, to ask a question at this time, please press star then one. We're not showing no questions. I'd like to turn the call back over to Jing He for closing remarks.
spk01: Okay, no question at this time. We will upload the full transcript on our website. Please go to our website for the full transcript if you are interested. And we have no other comments. Thank you, everyone, for attending our fiscal year 2022 earnings call. If you have any further questions, please feel free to contact us. Thank you very much. Operator, please.
spk00: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
Disclaimer