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spk00: The conference will begin shortly. To raise your hand during Q&A, you can dial star 1 1. The conference will begin shortly. To raise your hand during Q&A, you can dial star 1 1. The conference will begin shortly. To raise your hand during Q&A, you can dial star 1 1. The conference will begin shortly. To raise your hand during Q&A, you can dial star 1 1.
spk06: Sorry. Ladies and gentlemen, welcome to Puyis Inc's fiscal year 2022 earnings conference call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, there will be a question and answer 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 repeat 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, everyone. Sorry for the delay. There was a small incident. Welcome to our earnings conference call for the fiscal year ended June 30, 2022. Our annual report on Form 20F has been uploaded to the website of U.S. Security and Exchange Commission earlier today and is also available on our IR website. Before we continue, please note 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 outlined in our filing with the SEC, including our 20F and 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 Chairman of the Board and Chief Executive Officer, Mr. Yong Ren, and Chief Financial Officer, Mr. Amin Hu. Mr. Ren will first work you through our business and financial conditions of the fiscal year 2022, and he, together with Mr. Hu, will answer your questions after the prepared remarks. Now, I will turn the call to Mr. Ren. 首先,我将讲述公司的业务概况及主要经营举措。 First, let's take a look at Operational Results and Business Initiative in the fiscal year 2022.
spk07: In 2022, the COVID-19 pandemic is still ongoing. At the same time, it is affected by China and the United States' trade gap, nuclear conflict, global inflation, and the country's acceleration and deceleration. The impact of the U.S. economy. China's GDP continues to slow down. This year's second half of the year, the second-tier market performance is not good. Investors' risk bias is shrinking. Investment confidence is severely damaged. In March of this year, the country...
spk01: Sorry, there is an accident that the line of the CEO has been cut off. I will let the CFO to continue.
spk04: Mr. Hu In March this year, Prime Minister Li Keqiang of the State Council emphasized that the government's work report must climb over the threshold and highlight the leadership's determination and determination to maintain a stable economy. At the same time, he clearly insisted on a steady and steady work schedule. He pointed out that the steady growth should be placed in a more prominent position. In the fiscal year,
spk01: to Premier Li He Ping in the report on the work of the government. The report stressed that we must climb the slope and overcome the obstacles, which clearly showed the determination and strength of China's leaders to maintain a stable growth of economic. At the same time, the report clearly pointed out that the government should prioritize stability right pursuing progress and should take initiatives which are beneficial to economic stability. Stable growth was also the guideline of us in the past fiscal year.
spk04: Under the influence of various unfavorable factors, the management has maintained a strategic position, and has strongly promoted the development and decarbonization of various measures. This year, we have maintained the overall performance stability, and have achieved a total revenue of 1.9 billion yuan, which is basically equal to 2021. Despite all these situations, our management insists on our strategy and
spk01: rigorously undertook several initiatives to increase income and control costs in all aspects. In the fiscal year 2022, we recorded a total net revenue of RMB 188.7 million, US dollar 28.2 million, which did not deteriorate much as compared to the fiscal year 2021. In particular, the net revenues generated from privately raised fund products increased by 29%, and the net revenues generated from consulting and other services increased by 886.1%, while the net revenues generated from public raised fund products decreased by 14.5%.
spk04: Looking back at this year's financial year, we mainly focus on improving the quality of the sales organization, opening up the source of income, monitoring the cost and cost, and other aspects. In the second half of this financial year, compared to the loss in the first half of this financial year, it decreased by 45.4%. The initial management of the management of the management of the management of the management of the management of the management
spk01: In the past fiscal year, we mainly focused on improving the quality of our sales organization, expanding the source of income, and strictly controlling cost and expense. This led to the reduced loss in the second half of the past fiscal year by 45.4%, period on period, compared with the first half of the past fiscal year. Respecting the effectiveness of our management's measures to increase income and cut costs, the details are as follows.
spk04: 1. Develop the organizational development line in the professional financial work space to firmly execute the development strategy of professional platform plus elite entrepreneurship. This year, the company managed to adjust the organizational development model of sales according to market changes. to optimize the production capacity of employees-based financial institutions, and to develop financial workstations in large numbers, and to set the cost of labor as a variable cost. At the same time, to optimize the layout of city branch offices, and to actively shrink the number of city branch offices that do not meet the expected capital ratio. Since the launch of the financial workstation model, as of June 30, 2022, we have reached cooperation with 135 financial workstations.
spk01: First, we regarded the development of a professionalized wealth management studio as the axis of our organizational development and firmly implanted professional platform plus elite entrepreneurship as our development strategy. In the fiscal year 2022, our management address addressed our sales organization according to the changes of the market. optimize and improve the per capita productivity of our in-house financial advisors. We rigorously develop cooperation with wealth management studios, which may effectively reduce our costs. At the same time, we optimize the layout of our branch office and actively show some underperformed branch office. Since the launch of our wealth management studio model, we had established cooperation with 135 wealth management studios as of June 30, 2022.
spk04: Second, continue to strengthen professional platform construction and vigorously promote family office business. With the arrival of the aging population and the economic development cycle of China entering a stable housing period, a large number of high-income families in China, which have changed and opened up, continue to increase their wealth preservation and inheritance needs. The company has already initiated the construction of the family office business system. On the inside, there is the Home Office Business System 1.0. This is an online digitalized, digital information platform for home office business operators to provide home office customer management, maintenance management, home office customer maintenance management, trust management, progress management and program tracking, and other background operation functions. In addition, the company has been in contact with trust companies, insurance companies, education service agencies, tax authorities, the Ministry of Justice, the Ministry of Health, the Ministry of Service, and other institutions, basically completed the construction and layout of a comprehensive process of developing business on the ground, such as insurance and family trust, overseas education, tax service, medical service, and other professional services and operating systems. As of June 30, 2022, to complete 86 trust and support services, and a total of 1 billion yuan in trust and support assets. Thanks to this, our trust and support revenue this year has greatly increased.
spk01: Second, we continuously strengthen the construction of our professional platforms and rigorously promote our family office business. With the coming era of population aging and the entering of the stabilization period of China's economic development cycle, A large number of Chinese affluent and high net worth families who have become rich after reform and open up continue to have a high demand for wealth restoration and inheritance. We have started the construction of the family office business early. As of June 30, 2022, internally, we launched Family Office Business Operation System 1.0. This is an online digital information platform for family office businesses. providing family office business operators with back office service, such as client manager, maintenance and management, client maintenance and management, trust management, and checking. Excellently, we have established cooperation with trust companies, insurance companies, education services institutions, tax firms, law firms, health service institutions, and etc. we have basically completed the establishment and layout of professional service and operation systems for affluent and high net worth families by offering a comprehensive set of services such as insurance premium trust, family trust service, overseas education service, tax service, legal service, medical care service, and etc. As of June 30, 2022, We have advised clients on setting up 86 trust accounts with an aggregate value of their entrusted assets of RMB 1.0 billion. Benefiting from this, our consulting service revenue has gradually increased in the fiscal year 2022.
spk04: Third, we aim to further enrich the product price based on customer demand. This year, the company continues to adhere to the strategy of banning products. In terms of public funds, it continues to focus on the current public-owned combination product strategy, to support the sales of high-quality, single-use, closed-off public funds, and to cultivate the customer's long-term habit of holding products, and to respond to the short-term training activities of the market to improve the customer's investment experience. In terms of private fund, the Autonomous Management Authority and WIAP have introduced the Mingxin Private Fund Cooperation to ensure that there are two or more public funds available in the main private fund categories. First, we further enrich our product offering to keep up with clients' evolving needs. In the past fiscal year, we continue to adhere to our strategy of standardized product transformation.
spk01: For public-raised fund products, we continue to focus on the existing public-raised product portfolio strategy, supplemented by the sale of high-quality single close-end public-raised funds. We aim to cultivate clients' habit of maintaining products for a longer period of time to avoid short-term drastic market fluctuation and enhance clients' investment experience. As for private raise fund products, we offer both self-managed force and external high-profile private raise funds to ensure that we have two or more portfolio strategy of each time available. We have also been striving to design, develop, and provide more products to our clients, in particular, by providing more customized products and or service to high net worth clients. As of June 30, 2022, The number of our privately-raised Forbes products has increased to 34.
spk04: Fourth, we continue to optimize our IT system to fully serve the development of all of our business lines.
spk01: The establishment of a professional platform is acceptable from the support of scientific and technological force. In the past fiscal year, we carried out a foreign initiative on our IT system construction.
spk04: The first is the online institutional business system 1.0, which is developed by the core business system of Hu Yi Fund. It is a temporary service solution provided to institutional investors by outside fund investors. The core goal is to provide a comprehensive service solution First, we launched Institution Master System 1.0
spk01: InstitutionMaster is a one-stop service solution for institutional investors to manage their OTC firm investments, aiming to provide professional and convenient investment service to institutional clients. It provides more professional, efficient, and intelligent trading experience for our leading intelligent trading system, extensive product portfolios, and comprehensive investment research systems. With this system, we provide institutional investors with customized fund trading solutions to better meet their needs.
spk04: 第二,上线朴毅商学APP。 朴毅商学是具有中国特色的家庭金融资产配置理财师培育平台。 致力于为理财师们提供全方位的知识赋能,能力赋能和工具赋能。 体系化的金融知识课程,多元化的实战经验分享, Second, we upgraded Puyi Business School to be a mobile education. This Puyi Business School is a family asset allocation advisory education platform. It aims to provide financial advisors
spk01: with various of knowledge empowerment, capability empowerment, and tool empowerment. Systematic financial knowledge course, diversified practical experience sharing, and the boutique industry celebrity lectures are the most distinctive section of Puyi Business School. Also, with the cooperation of several education institutions, Puyi Business School provides large number of course and practice on qualified certification paths.
spk04: The third is the online TAMP asset configuration platform. Based on the diversified financial asset configuration needs in the offline service scene of Li Caixi, TAMP asset configuration platform is a leading use of financial technology innovation to help Li Caixi accurately locate customer needs, efficiently track and manage customers. The smart Li Caixi one-stop comprehensive job and exchange platform, which integrates one-stop industry platform, integrates the three core functions of the customer SCRM system as well as the self-investment function.
spk01: First, we have added TEMP 20 asset management platform asset allocation system to the iFinancial Planner mobile application. Taking into consideration of the offline service scenario of financial advisors and the diversified needs of family financial asset allocation, this This new system with leading technology is designed to help financial advisors pinpoint clients' needs and effectively track and manage clients through the one-stop comprehensive operation and communication platform. The system integrates three core functions, one-stop business development platform, asset allocation intelligent investment advising function, and client SCRM system, and provides financial advisors with four empowering services. training and growth, client maintenance, team management, and operation support.
spk04: Strictly manage cost and cost. Organize the optimization effect. This is to lead with the people's efficiency index, with professional ability and value contribution as the main direction. Strongly optimize the structure of employees. Currently, the total number of employees in the company has dropped, but the employee team's young and professional trend has further emerged. We strictly control our operating costs and expenses, and the result of the organizational optimization is significant.
spk01: We optimize our employee structure with the per capita productivity index extraction and mainly oriented to professional abilities and value contribution. Second, we further reduce our administrative expenses and comprehensive control our cost. Benefiting from our string cost control, our result of operation was nearly the same with last year despite the influence of external environment to our total operating revenues.
spk04: Six, we insist that financial industries should be good, responsible, and warm.
spk01: As we develop our business, we are always dedicated to our social responsibility. We donated condolence and prevention materials to Chengdu in Sichuan forward when it was under serious COVID-19 pandemic in September 2022. In the same month, earthquake hit Luding County of Sichuan Province. Our employee representatives initially took part in the disaster relief activity held by Sichuan Red Cross.
spk04: Next,
spk01: We will briefly introduce our financial conditions for the fiscal year 2022.
spk04: 本财年总营业收入为人民币1.9亿元,较去年同期减少1.3%,按各条业务线。 In the past fiscal year, our net revenues decreased year-on-year by 1.3%, from RMB 191.2 million to RMB 188.7 million.
spk01: US dollar 28.2 million. Next, turn to each of the individual business lines. The first business line, our wealth management service.
spk04: Net revenues generated from our wealth management service decrease year-on-year by 2.9%.
spk01: from RMB 176.6 million to RMB 171.5 million, US dollar 25.6 million. In particular, 本财年私募基金产品收入为人民币6,160.3万元, 比去年同期人民币4,774.5万元增加29%,
spk04: The increase was primarily due to the increase in commission income, including management fee.
spk01: of privately raised fund products, as well as the increase in performance-based fees.
spk04: Net revenues generated from distribution of publicly raised fund products decreased year-on-year by
spk01: 14.5%, from RMB 128.5 million to RMB 109.9 million, U.S. dollar 16.4 million. Such decrease was primarily due to a decrease in commission income, including management fee, as a result of the decrease in the distribution and the outstanding balance of transaction value of public-raised fund products.
spk04: The second is asset management business.
spk01: The second business line, our asset management service. Net revenues generated from asset management service for the past fiscal year was RMB 5.9 million, US dollar 0.9 million, representing a 56.3% year-on-year decrease from RMB 13.5 million. This decrease was primarily due to a decrease of 69.2% in performance-based carry interest income to RMB 2.4 million, US dollar 0.4 million. generated by our actively managed force from RMB 7.8 million for the fiscal year ended June 30, 2021. 第三,最后是咨询及其他服务业务。 And the last business line, our consulting and other service.
spk04: Let revenues generated from consulting and other services were RMB 11.3 million, US dollar 1.7 million, representing an increase by 886.1% year-on-year from RMB 1 million.
spk01: Revenues generated from consulting primarily consist of consists of service fee from facilitating of insurance products for an insurance agent's partner and service fee from providing comprehensive trust consulting service. And last but not least, let's elaborate on the strategic planning and outlook for the future of our company. In the fiscal year 2023, we will insist on professional platform path elite entrepreneurship as our long-term development strategy. The details are as follows.
spk04: First of all, we will take per capita productivity as core assessment indicators.
spk01: to further optimize our sale organization.
spk04: First, optimize the financial business recruitment line. On the one hand, by gaining experience in the past financial business recruitment process, realize the recruitment process, standardize and professionalize, and work hard to add effective financial workstations. So far, we have achieved cooperation with more than 190 financial workstations. On the other hand, we need to increase the professional capability and process control of the existing financial system, and finally form a whole set of financial system gene systems
spk01: First, we will optimize the process to attract wealth management studios to enter into cooperation with us. On one hand, we expect to realize the specialization and professionalization of engagement management with wealth management studios by extracting past experience and try to engage more wealth management studios. As of today, we have established cooperation with more than 190 wealth management studios. On the other hand, we will further empower our existing financial advisors and control their working progress, and eventually build up a complete financial advisors operation system to ensure that our operation with financial advisors could be implemented to achieve our goals.
spk04: Second, we will strengthen the productivity of our financial advisors. Our financial advisors should achieve
spk01: the professional transition from financial planner to professional personal banker, and finally to family wealth inheritance manager, and upgrade their service to provide asset management and wealth management service from simply selling products. 第二,迎接财富管理大风口,大力推进家族办公室业务。
spk04: Second, we will embrace the booming of wealth management industry and rigorously promote family office business. After a year of polish, we are capable to serve our family office business.
spk01: but there are still some gaps in operational efficiency and professional empowerment output from the company's requirements. In the fiscal year 2023, we will improve in the following aspects.
spk04: First, we will improve in the following aspects. First, we will improve in the following aspects. First, we will develop and launch the 2.0 version of our family business operation system. The launch of our 1.0 version
spk01: preliminary solved the problem of the sharing of internal information and empowered financial advisors to manage their trust clients and trust business online, which we have seen an improvement in our operating efficiency. Our future 2.0 version will focus on the information communication between the financial advisors and clients and improve the information transition efficiency among the front, middle, and back office. We believe the 2.0 version will deliver a better experience to our financial advisors and the clients.
spk04: Second, we will further increase the number of operations
spk01: of cooperating trust companies and other service providers under the needs of financial advisors and clients. At the same time, besides expanding sales channels by individual financial advisors, we will also rigorously expand our external cooperation channels with our trust consulting service as a vehicle. 第三,全面建设高净值客户家庭服务体系。
spk04: Currently, the demand for tax services, education services, and health care services is abundant. We will do our best to build a good service system. Under the premise of customer privacy, we will establish a trust account service expert team, and we will focus on the financial management account. After the opening, customers will have a comprehensive comprehensive asset configuration, as well as a non-financial planning service for the entire family. Based on this, our financiers will receive more professional benefits and warmer companionship.
spk01: Lastly, we will comprehensively build a service system for a front and high net worth family clients. At present, there is a strong demand for legal service, tax service, education service, and healthcare service. We will focus on creating a good service system. We will establish a trust account service expert group to focus on providing clients with full life cycle of asset allocation and financial planning service for their entire family after the opening of their trust account. As such, our financial advisors will be professionally empowered and warmly accompanied. Our clients will have a better experience and we can achieve a win-win situation for financial advisors, clients, and our company.
spk04: The third is the institutional business of the public-private fund. In the process of large-scale financial management development, the institutionalized trend of public-private fund investors is very obvious. Since the end of 2021, according to public data, the proportion of institutional investors in the public-private investment scale in the entire market has exceeded 47%. The number and type of public fund has a wide range of features, and its wide-ranging and information-transparency advantage has made it one of the most suitable investment types for institutional investors. In the future, through the self-proclaimed institutional public fund trading platform, we will provide institutional investors with individualized trading functions, a rich product combination, and a professional investment system.
spk01: First, we will devote our full efforts in institutional clients. With the development of wealth management industry, it's obvious that more and more institutional clients are becoming investors of public-raised fund products. According to public data, the transaction value contributed by institutional investors accounted for more than 47% of the market-wide public-raised fund scale by the end of 2021. The types and numbers of public-raised fund products are becoming extensive, and the advantage of string regulation and information transparency of public-raised fund products make them become the most in-compliance investment products and the most popular investment products to institutional investors. In the future, we will provide our institutional investors with customized trading functions, extensive product portfolios, and professional investment and research system, while institutional master system, product offering, investment and research ability, and offline service network. Fourth, we strengthen our compliance construction and adhere to the compliance of the sale of private raise fund products and license operation and sales.
spk04: Life is company.
spk01: Licensed personnel and product compliance have become the bottom line requirement for financial industry under the current strong financial regulatory trend. In the fiscal year 2023, we will continue to strengthen the compliance construction and the compliance inspection of our branch office to ensure the safe and stable operation of our company. For the sale of private rate fund products, we will continue to ensure that it is in compliance to relevant regulations and laws. We will strengthen the compliance management in and avoid the transmission of investment risk of the product to our company.
spk04: With China's high-level customer family wealth management and the growing demand for traditional services, the era of wealth management has come to an end. Tuyi Group must hold tight to the threshold of the era, and build an outstanding time platform as the backbone, so that you can gain sales, growth, and success on the platform, as well as the value of customer, employee, shareholder creation.
spk01: Along with the increasingly strong demand for wealth management and inheritance services for affluent and high net worth families, a great era of wealth management industry is arising. We must grab the next big thing of this era and build an extraordinary TEMP platform so that our financial advisors could achieve deals, growth and success on our TEMP platform and create value for our clients, employees and shareholders. That ends with the prepared remarks, and now we are open for the questions. Operator, please.
spk06: Thank you. We will now begin the question and answer session. If you wish to ask questions, please press star 11 on your telephone and wait for a name to be announced.
spk05: Once again, to ask question, please press star 11. As a reminder, to ask question, please press star 11 on your telephone.
spk01: Seems no questions at this time, and sorry for the small incidents happened today. We will upload the full transcript on our website. Please go to our website for the full transcript later if you are interested. And we have no further 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.
spk06: Thank you. The conference has now concluded. Thank you for attending today's presentations. You may now disconnect your lines.
spk00: The conference will begin shortly. To raise your hand during Q&A, you can dial star 1 1.
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