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spk01: Ladies and gentlemen, welcome to Pooja's Inc. first half of the fiscal year 2023 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 Yi. who you are as General Manager of Financial Reporting Department. Thank you. Please go ahead.
spk02: Thanks, Operator. Good evening. Welcome to our earnings conference call for the first half of the fiscal year 2023. Our half-year report on Form 6K has been uploaded to the website of U.S. Securities and Exchange Commission earlier today, and it's also available on our IR website. Before we continue, please note that the discussion today will contain overlooking statements 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. We do not undertake any obligation to update this forward-looking information, except as required under the particular law. Joining us today are our Chairman of the Board and Chief Executive Officer, Mr. Yong Ren, and Chief Financial Officer, Mr. An Ning Hu. Mr. Ren will walk you through our business and financial conditions of our first half of the fiscal year 2023, and he, together with Mr. Hu, will answer your questions after the prepared remarks. Now I will turn the call over to Mr. Ren.
spk00: Good evening, everyone.
spk02: Thank you for joining us today on the conference call for the first half of the fiscal year 2023. Here with me is our Chief Financial Officer, Mr. Ah Ming Hu. We will begin today's call with an overview of our financial and operational response for the first half of the fiscal year 2023, followed by a brief discussion of our business outlook for the future.
spk00: We will then open the floor for questions.
spk02: 首先,我将讲述公司的业务概况及主要经营举措。 First of all, let's take a look at our business development in the reporting period.
spk00: The investor's investment emotions are weak, and the investment experience is relatively poor. Under the unfavorable situation, the management has maintained strategic governance, continued to reduce the cost-effectiveness, strengthen the professional ability to build, and train internal workers. The company's operating costs have dropped by 28% at the same time. At the same time, the company has further strengthened the strategic layout of high-end customer wealth management and inheritance service ability construction.
spk02: In the first half of the fiscal year 2023, due to the impact of COVID-19 pandemic, China's economic has not recovered permanently and the capital markets have been volatile, which led to weak investment sentiments and poor investor experience. Despite dismal conditions, our management team strategically maintained our focus to reduce costs and increase efficiency, while strengthening the internal training to enhance professional skills. We were able to reduce our operating expenses by 28% period on period. Furthermore, we continue to strategically reinforce our focus on wealth management and inheritance service for wealthy and high net worth clients. In particular, our trust consulting service achieved great progress, with the number of completed trust consulting service projects increased by more than five times, period on period. 这个半年,公司的主要经营状况及举措汇报如下。 Our main business operations and strategies during the reporting period are listed as follows. 以客户需求为导向, First, we diversify our product offerings based on client needs and stabilize our fund distribution business.
spk00: The retail fund distribution business is the foundation of our business and the main source of our income. Although the Asia secondary market had an overall poor performance,
spk02: the yield of most of our fund products in the current period outperformed the bench index. As we continue to focus on changes in client needs and soothe the client's emotions through higher frequency of investor education, I managed to improve the performance of our fund product portfolios by enhancing our own investment and research capacity.
spk00: In terms of
spk02: product investment and research, we further expanded our public-raised fund product portfolio by increasing the number of public fund companies we cooperate with, which increased from 89 as of June 30, 2022 to 109 as of December 31, 2022. Our public-raised fund product offering currently covers most of the products offered in the market In addition, we added two new fund product portfolios according to the needs of clients in the market, including automatic redeem product, a smart product which automatically redeems when reaching the target profit rate, and a smart regular investment product, a smart product which periodically provides investors to contribute different amounts of investments based on the current market conditions. Through the new products bringing new business, These two differentiate and customize products meet the needs of clients and stabilize the balance of public-raised fund products. For our privately-raised fund products, we further enhance our private fund product strategies. For example, we timely launch convertible bonds and commodity futures strategies according to market demand and was able to capture high yield opportunities for clients in volatile markets. 大力发展保险金信托等加班业务,信托受理件署再创新高。 Second, we vigorously develop our family trust business, such as insurance premium trust products, and the number of completed trust consulting service projects reached a new high. 本期内,公司协助客户完成的信托服务单数同比去年增长5倍以上,同时,
spk00: During this reporting period, the number of completed trust consulting service increased by more than five times over the same period in the fiscal year 2022.
spk02: At the same time, we successfully established an all-encompassing service system for wealthy and high-net-worth clients, including but not limited to tax, law, education, and overseas asset allocation service. We believe that through the insurance premium trust and family trust service, our ability in providing service to wealthy and high-net-worth clients will improve significantly. First, we upgraded the institutional business transaction platform and we grossly expanded business with institutional clients.
spk00: In terms of the construction of institutional business transaction platform, we achieved multiple upgrades during this period. In reaching the service experience of financial institutions,
spk02: especially small and medium-sized banks. In this reporting period, we successfully launched our business in financial institution market, currently covering most kinds of financial institutions, including banks, insurance companies, security companies, future companies, and trust companies. In this reporting period, the transaction value of public-raised funds by institutional clients exceeds RMB 2 billion, US dollar 0.3 billion, far exceeding the transaction value for the entire 2022 fiscal year. 四,IT系统持续优化,全面服务于各条业务线发展。 四,We continuously optimize the IT system to provide comprehensive service across all business lines. 本期科技工作可概括为投顾化加自主可控加建议求精。 During this reporting period, we make certain technological advancements, including upgrading the Puyi Fund App, launching an independent operating system, and optimizing system performance.
spk00: First,
spk02: we established a proprietary investment consulting system, which is embedded into the Hui Fund app, according to the new regulatory requirements, and connected the compliance portal of our investment consulting system to other fund companies' systems to ensure compliance with relevant regulations in online transactions of public-raised fund product portfolios.
spk00: DR.
spk02: Second, we further upgraded our core transaction system and institutional business system to improve our controlling and the flexibility of our operational system infrastructure. 第三,進一步推進加辦業務系統項目,目前已實現了加辦業務流程 Third, we progress in the standardization of our system for family office business. The family office service and the entire life cycle of trust management can now be conducted entirely online, greatly improving the operational efficiency of our family office business.
spk00: And fourth, we further optimize the iFinancial Planner app and Puyi Business School app. We launch the insurance policy
spk02: diagnosed and fund healthcare diagnosed functions for the iFinancial Planner app to better empower financial advisors. We upgraded the function of the Puyi Business School app to satisfy the requirements of being an independently operating commercial application.
spk00: Please, restrict the control cost and expenses.
spk02: and achieve success in organizational structure optimization. Despite a yet to be improved external business environment, the management continues to reduce costs and increase efficiency in this reporting period. For our branch office, we further strengthen the operating space and reduce the workplace expense. At the same time, we are able to decrease our marketing expenses significantly as we change our marketing initiatives for public-raised fund product portfolios, from stimulating the growth of new accounts to stimulating the growth of new investments. 接下来,我将简单介绍公司本期的经营情况。 Next, I will briefly discuss our financial conditions for the first half of the fiscal year 2023. 本期总营业收入为人民币6,842.9万元,
spk00: For the first half of the fiscal year 2023, net revenues decreased period-on-period by 32.6%, from RMB 101.5 million to RMB 68.4 million, U.S.
spk02: dollar 9.9 million. Now, next turn to each individual in this line.
spk00: First, for our Wealth Management Service. Net revenues generated from our Wealth Management Service decreased period on period by
spk02: 43.2% from RMB 94.2 million to RMB 53.5 million, US dollar 7.8 million in particular.
spk00: One, investors are affected by the market fluctuation and are uncertain about the future. Therefore, there is a shortage of products that are more likely to be listed on the market. Therefore, during the reporting period, we have reduced the sales and storage size of our private fund products, which leads to a reduction in commission income and management fees. Two, this period of the private fund's floating performance reward is RMB 176.4 million. Net revenues generated from the distribution of privately raised fund products for the reporting period were RMB 17.8 million, U.S.
spk02: 2.6 million, representing a 54.1% period-on-period decrease from RMB 38.8 million. The decrease was primarily due to, first, the fact that investors were affected by the volatile market with increased uncertainty of the future, leading to a negative sentiment for private interest 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 private interest fund products decreased, resulting in a decrease in commission income including management fees. And second, performance-based fees of RMB 1.8 million recognized in the first half of the fiscal year 2023, as compared to RMB 3 million in the first half of the fiscal year 2022, representing a 41.7% decrease.
spk00: The decrease is mainly due to the impact of global geopolitics and domestic epidemic control. The A-currency market has been in disarray for a long time. The confidence of large investors is low. The sales of public fund products is not ideal, which has led to a decrease in income. Now the epidemic control has been released. The domestic economy and financial market have entered a recovery period. We are confident that with the recovery of the country's economy,
spk02: And net revenues generated from the distribution of public raised fund products for the reporting period were RMB 35.8 million, US dollar 5.2 million, representing a 35.5% period-on-period decrease from RMB 55.5 million. 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 a decrease in transaction value of public-based fund products and a reduction in commission income. Currently, the COVID-19 control measures have been relaxed, and the domestic, economic, and financial markets have entered a recovery period. We are confident that with the recovery of China's economic The transaction value of public raised fund products will be restored soon. 二,接着是资产管理业务。 Second, for our asset management service.
spk00: Net revenues generated from asset management service for the reporting period were RMB 1.2 million, US dollar 0.2 million, representing a 68.7% period-on-period decrease from RMB 3.7 million.
spk02: The decrease was primarily due to a 95.7% decrease in performance-based fees generated by our actively managed funnel funds to RMB 76,000, US dollar 11,000 for the first half of the fiscal year 2023, from RMB 1.8 million for the same period of the fiscal year 2022. 三,然后是保险咨询业。 Third, for our insurance consulting service.
spk00: Net revenues generated from our insurance consulting service for the reporting period
spk02: for RMB 7 million, US dollar 1 million, representing a 112.7 period-on-period increase from RMB 3.3 million. The increase was primarily due to the fact that we provided consulting service to more clients and the insurance premium had increased accordingly.
spk00: 是,最后是其他收入。 Last, for our other service. 本期其他营业收入为人民币672.3万元, Net revenues generated from other services for the reporting period were RMB 6.7 million, US dollar 1 million, representing a 2,485.8% period-on-period increase.
spk02: from RMB 0.3 million. Revenues from other services in this reporting period mainly come from consulting service related to trust and family wealth inheritance service provided to clients. Last but not the least, let's elaborate on our strategical plans and our outlooks for the future.
spk00: As the epidemic prevention and control policy is fully open at the end of 2022, we believe that China's economy will continue to grow in 2023. The launch of the registration system will also drive China's capital market to rebuild its new ecology. As the confidence of investors gradually recovers and the epidemic returns, we believe that the low-income situation of the wealth management industry will continue to improve in 2023.
spk02: In light of the relaxation of the pandemic prevention and control policy at the end of 2022, we believe that China's economic 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 market Wealth management industry is expected to improve continuously in 2023. We will focus on the following four main strategies. First, to stabilize our core business and capitalize on the trend of economic recovery.
spk00: distribution of public-raised fund product portfolios,
spk02: is our core and main business. The outstanding balance of our public-raised fund pull-up portfolios declined in the past two years due to the impact of the pandemic and the sluggish capital market caused by the economic downturn. Our management emphasized to seize the opportunity and capitalize on the economic recovery in 2023, further strengthen our investment and research capabilities of public funds, Enhance service operations capabilities. Timely devote efforts in marketing and promotion of public funds and seize new growth opportunities while maintaining regular business operations.
spk00: On the one hand, the company will continue to improve the family trust and service level of high-end customers, and continue to improve the operating efficiency through the self-developed overtime system. According to the customer needs, introduce and optimize products and services providers, increase the expansion of external company channels, and strengthen the company's service capacity to B-end. On the other hand, the company will pay attention to the family needs of high-end customers, pay attention to wealth management,
spk02: We will continue to improve the quality of our family trust service for wealthy and high net worth clients by increasing operational efficiencies through our self-developed family office system, launch 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 systems. Further, we will pay attention to the needs of families of wealthy and high net worth clients, observe the upstream and downstream wealth management industry, seek opportunities for business collaborations and mergers and acquisitions, and try to provide more to pass on wealth. for potential future business opportunities. Despite fierce competition, leveraging our extensive existing client base of banks and insurance companies, we hold great advantage and opportunities against our industry peers. In the future, by adopting an investor's point of view, combined with our investment research capabilities and professional team and Puyi Family Office Department, we will expect to empower our institutional clients especially banks and insurance company clients, and treat them sincerely with an open mind and achieve a win-win situation, optimally increasing our market share. Fourth, to develop a self-controlled IT infrastructure to assist in the continuous improvement of our cloud business.
spk00: 2023年,我們將集中資源,以助力重點業務發展為核心,聚焦 Puyi 基金平台,機構業務系統和加辦業務系統現實。 In 2023, we will concentrate our resources on upgrading the Puyi Fund App, Institutional Business System, and Family Office Business System.
spk02: 第一,Puyi 基金平台,圍繞一旦式綜合投顧服務平台理念目標。 First, to further improve the Puyi Fund app as a one-stop comprehensive investment advisory service platform, we will upgrade its intelligent investment consulting system through digitalization and AI, integrating it to the client's entire lifecycle.
spk00: Second, Second, for the institutional business system, we will timely optimize and iterate its function to keep up with leading platforms as soon as possible. And third, for the family office business system, we will upgrade from three aspects. First, to integrate our IT infrastructure with the trust company system, and it's
spk02: information network to further improve the efficiency in providing our trust consulting service. Second, to strengthen our digitalization construction to obtain further improve the efficiency in – it seems like our line just dropped off for four seconds, so let me repeat. And third, for the family office business system, we will upgrade it from three aspects. First, to integrate our IT infrastructure with the trust company system and its information network to further improve the efficiency in providing our trust consulting service. Second, to strengthen our digitalization construction to obtain real-time data analysis of our trust service progress and status. And third, to optimize and improve our IT infrastructure to better support the development of the family office business.
spk00: Pass a fallen ship 1,000 sail onward For six trees, 10,000 trout by three Post-COVID era
spk02: The wealth management industry is expected to embrace a long-term sustainable growth cycle. Queen 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. That ends with our preparing remarks. Now we will open for questions. Operator, please.
spk01: Thank you. At this time, we will conduct the question and answer session. As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. One moment, please. Again, as a reminder, to ask a question, you will need to press star 11 on your telephone. Please stand by. As a reminder, to ask a question, please press star 11 on your telephone. One moment, please. At this time, I would now like to turn back to Jinghee for closing remarks.
spk02: Thank you. Seems no questions at this time. It seems like our time drops off for a second, so if you are interested in the free full transcript, we will upload it on our website after this call. Please go ahead and see it if you are interested. And we have no other comments at this time. Thank you everyone for attending our fiscal year 2023 earnings call. If you have any further questions, please feel free to contact us. Thank you very much, operator.
spk01: This now concludes today's conference call. Thank you for participating. You may now disconnect.
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