Jupai Holdings Limited American Depositary Shares, each representing six ordinary shares

Thank you for standing by for Juppe's third quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Please note, today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn it over to Mr. Eddie Gore, Juppe's IR Director.

Hello everyone, and welcome to GPI's earnings conference call for the third quarter and the nine months ended September 30th, 2021. Leading the call today is Mr. Jian Danyi, our chairman and CEO, who will reveal the highlights for the third quarter of 2021 and the nine months ended September 30th, 2021. I will then discuss our financial results. We will then open the call to questions, at which time our CFO, Ms. Min Liu, will also be available. Before we continue, I refer you to our safe harbor statement in the earnings press release, which applies to this call, as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that, unless otherwise stated, All figures mentioned during this conference call are in RMB. I will now turn the call over to Mr. Jian Danyi, our chairman and CEO, and I will interpret his remarks for you.

Thank you, Eddie, and welcome everyone to today's conference call. In the third quarter of 2021, despite the spread of the global epidemic, there are many challenges in domestic and foreign risks, but the Chinese economy remains in a stable and recovering state. The investment situation of the high-income people remains stable. The change in business industry trend and market environment is a sign of the transformation of enterprises and the continuous improvement of business performance. In this quarter, the total income of 1.093 billion RMB was increased by 28.4% in the same period last year.

In the third quarter of 2021, investment sentiment among H&W individuals remained stable as China's economy saw steady growth despite increasing challenges globally in the face of the spreading pandemic. DuPai remained committed to corporate transformation in accordance with industry trends and changes in the market environment and experienced continued improvement in business performance, with net revenue growing 28.4% over the same period last year From the perspective of products, Under the background of the rapid growth of direct and financing markets and the changes of the real estate sector and companies, GPI has been focusing on product transformation and aims to reduce the proportion of our investment in the real estate sector while continuing to make progress in the equity and secondary market products, mutual fund products, and other net worth asset products.

GPI may make reasonable adjustments in the future. G-Pi may make reasonable adjustments in its future structure in order to better adapt to changes in the

better focus on the company's high-quality assets, and deepen our focus on wealth management. We remain optimistic about the prospects for China's wealth management industry and believe GPI's capabilities strongly position us to seize opportunities and participate in the long-term development of the industry.

下面请陈雷先生为大家介绍GPI 2021年第三季度前三季度的财富概况,谢谢。

I will now turn the call over to Eddie to go through the potential results for the third quarter and the nine months ended September 30th, 2021. Thank you. Thank you, Ni Zong. We are encouraged to see improved business performance and operational capabilities with net revenue growing 28.4% over the same period last year to RMB 109.3 million. For the first nine months of 2021, the aggregate value of wealth management products distributed with RMB 5.7 billion, a 7.0% increase from the same period in 2020. We will continue to improve our productivity while optimizing overall client experience. Now, I will walk you through our financial highlights for the third quarter of 2021, and the nine months ended September 30, 2021. Net revenues for the third quarter of 2021 were RMB 109.3 million, a 28.4% increase from the corresponding period in 2020, primarily due to increases in one-time commissions and recurring management fees. Net revenue were RMB 288.6 million for the first nine months of 2021, a decrease of 0.5% from the same period in 2020. Operating costs and expenses for the third quarter of 2021 were RMB 95.3 million a decrease of 4.8% from the corresponding period in 2020. For the first nine months of 2021, operating costs and expenses were RMB 271.0 million, a decrease of 18.2% from the same period in 2020. Operating margin for the third quarter of 2021 was 12.8% as compared to negative 17.6% for the corresponding period in 2020. For the first nine months of 2021, operating margin was 6.1% compared to negative 14.2% for the same period in 2020. Net loss attributable to ordinary shareholders for the third quarter of 2021 was RMB 33.4 million as compared to RMB 3.0 million from the corresponding period in 2020. For the first nine months of 2021, net loss attributable to ordinary shareholders was RMB 27.5 million as compared to RMB 33.4 million from the same period in 2020. Net loss attributable to honorary shareholders per basic and diluted American deposit share for the third quarter of 2021 was RMB 1.01 and RMB 1.01 respectively, as compared to RMB 0.09 and RMB 0.09 respectively from the corresponding period in 2020. For the first nine months of 2021, Net loss attributable to ordinary shareholders per basic and diluted ADS was RMB 0.83 and RMB 0.83, respectively, as compared to RMB 1.00 and RMB 1.00, respectively, for the same period in 2020. As of December 3, 2021, we have repurchased 1,088,076 ADS as part of the company's share repurchase program of up to US$10.10 $10 million announced in February 2020 at a total cost of US $1,347,579, inclusive of transaction charges and related fees. That concludes our prepared remarks. I will now turn the call back to the operator to begin the Q&A session. Operator?

Certainly. Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, you can press the pound or hash key. Once again, it is star followed by one to ask a question. We have a question coming from the line of Yuhua Li from UBS. Please go ahead.

Hi. Thank you for giving this opportunity to ask questions. I have two questions. The first is we see that G-Pi's net revenue increased substantially over the same period last year. Can management share with us what factors contribute to this performance? And can you share more on product performance in this quarter? And the second question is, what is the management's outlook for the future of the industry? Can you share with us some of the company's plans? Thanks.

Thank you for your question. In the first half of this year, China's economy maintained a stable recovery status. Now entering the third quarter, there are many challenges of domestic and foreign risks. The global epidemic is spreading rapidly. The world economy is recovering slowly, facing a complex situation. The GDP of the third quarter of 2021 increased by 4.9%. The main red line indicator is maintained during the reasonable period, encouraging the investment community to maintain a relative stability in the third quarter.

Thank you for your question. In the first half of 2021, China's overall economic development maintained a steady recovery trend. That said, going into the third quarter, we have seen increasing challenges in both China and abroad as the global economic recovery slows in the face of spreading pandemic. Despite the complex situation, China's third quarter GDP in 2021 increased by 4.9% over the same period last year. The main macro indicators remain within a reasonable range, and the investment sentiment among high-net-worth individuals remains stable.

The G-PAC has achieved a net income of 1.093 billion RMB in three seasons. In the current era of asset management, GPI has continuously adjusted our business strategies and models in accordance with industry trends.

and changes in the market environment. We've been actively committed to transformation and to improving business performance. In the third quarter, GPI achieved net revenue of RMB 109.3 million, an increase of 28.4% over the same period last year. While further improving the incentive system for our wealth management advisor team, the average wealth management product value distributed per advisor has significantly increased. DeFi's aggregate value of wealth management products distributed during the third quarter was RMB 1.9 billion, and the amount raised per capita increased to RMB 10.3 million.

Recently, the company has been focusing on product transformation,

and aims to reduce the proportion of our investment in the real estate sector while continuing to make progress in the equity and second market products, mutual fund products, and other net worth asset products. In the third quarter, six listed issuers were underlying assets in Japan's private equity funds, including two listed on the Star Market, one listed on Nasdaq, two listed on the Second World Market, and one listed on the Hong Kong Exchange. Several more investee companies have obtained new financing and are making good progress.

In terms of secondary market products,

GPI continues to strengthen our market research capabilities in order to provide better asset allocation products for investors. Focusing on the development of standardized products while further diversifying strategies for secondary market products and completing our comprehensive product line. Our asset transparency system strategy remains an important long-term goal. GPI will continue to implement our transparency initiative throughout the product lifecycle consisting of researching, raising funds, investment, management, and withdrawal. In addition, we also require selected corporations or counterparties to meet rigorous transparency standards. As we regularly adjust our risk control standards, GPI requires our entire professional team to participate in due diligence processes to deeply understand the dynamics and future development of the selected industries, especially the management team of investment targets so as to better implant control measures over our products. GPI will continue to focus on improving the client's experience in order to analyze the products and services from the customer perspective through our pre-investment matching process, system upgrades, and internal coordination.

下面我来回答第二个问题。 中国人均GDP于联系两年突破一万美元。 从长期来看,未来时间将是中国资本市场蓬勃发展的黄金时间参考。 Now I will answer the second question. China's per capita GDP has surpassed $10,000 for two consecutive years from a long-term perspective.

The next decade will be a golden opportunity for the booming development of China's capital market. The shift in residents' wealth investment will promote the in-depth development of the wealth management business industry. Mutual funds will also experience a period of rapid growth, and industry prospects are expected to continue to improve. In line with industry trends and changes in the market environment, GPI will seize more opportunities to improve business performance.

Since China's firm resistance to the real estate industry and the mobility crisis of part of the real estate market, the market has been worried about the risk of abandoning credit, and has been cautious about real estate investment. But in recent years, with the supervision of multiple statements and political meetings, the market has stabilized and the central bank has reduced the number of people. The country will continue to support the commercial real estate market to better meet the reasonable financial needs of buyers and buyers. Promote real estate industry health development and positive conditions.

China's real estate industry is faced with deleveraging requirements and the outbreak of liquidity crisis within certain players. Market sentiment has been cautious about real estate investments due to the concerns over the credit risk of real estate companies. However, with the recent statements released by regulators signaling from the Politburo to stabilize market expectations and the reserve ratio cut announced by the central bank that more easing is on the way, China is set to continue supporting the commercial housing market to better meet buyers' reasonable housing needs and promote the healthy and sustainable development of the real estate industry. On the basis of the sharp rebound in October, real estate loans in November continue to double on a year-on-year basis.

Leveraging our advantages and experience in the wealth management industry,

GPI continues to explore new opportunities, including the establishment of a distressed asset disposal fund as a reserve for high-quality real estate investment targets. They use our advantages in real estate data to carry out equity mergers and acquisitions of high-quality assets and investment in previously issued overseas bonds by high-quality real estate companies. We believe that the financial characteristics of real estate will weaken in the future while its manufacturing and service features strengthen. And we believe developers with small but sophisticated low-debt models with low turnover will have more opportunities. For the future development, GPI will also focus on the real estate plus asset services such as industrial real estate, agricultural products market, senior focus real estate, and logistics.

From the perspective of investment direction,

GPI will focus on the promising investment opportunities in carbon emissions, carbon neutrality, high technology, and new energy sectors under the incentive of government policies. In terms of PE products, we will continue to focus on working with top institutions in the industry. At the same time, we will continue to collaborate with managers who we have worked well in the past with good returns.

We are expecting more customized secondary market products based on China's recent economic developments.

With the gradual maturity of the capital markets and the attraction of earnings effect, residents' wealth is shifting from real estate and savings to active markets, with customers increasingly interested in reallocating relevant assets.

will explore new opportunities and face new challenges as China's wealth management industry

realizes its enormous potential for further development in the new economic era. As we implement our asset transparent system strategy to create a new benchmark for value in our industry, we are confident and capable to play an important role in the long-term development of China's wealth management industry. We will strive to become one of the top wealth management and asset management brands for high net worth individuals in China. Thank you, Yu Hua.

Thank you.

Thank you. We are now approaching the end of the conference call. I will now turn the call over to QPA's IR Director Eddie Guo for closing remarks. Please go ahead.

This concludes today's call. If you have any follow-up questions, please get in contact with us. Thank you.

Thank you for participating in today's conference. You are now disconnected. Good day.