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

Thank you for standing by for JUPAI's fourth quarter and full year 2021 earnings conference call. At this time, all participants are in the 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'd now like to turn the meeting over to your host for today's conference, Mr. Eddie Guo, JUPAI's IR Director.

Hello, everyone, and welcome to GPI's earnings conference call for the fourth quarter and the full year ended December 31st, 2021. Leading the call today is Mr. Jian Danyi, our chairman and CEO, who will reveal the highlights for the fourth quarter and the full year 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 applied 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, Chen Lei. Welcome to the fourth quarter of 2021, the first quarter of 2021, and the first quarter of 2021.

Thank you, Eddie, and welcome everyone to today's conference call.

Thank you, Eddie, and welcome everyone to today's conference call.

2021 is the final year of the transition period for the new regulations regarding asset management, and compliance will always be an important guarantee for the healthy development of the wealth management industry in this new development phase. GPI is committed to asset allocation and product transformation with continued focus on equity and secondary market products. mutual fund products, and other net worth net products.

As the common prosperity trend deepens, our asset configuration will also undergo a fundamental change. The focus of the future investment pattern will be around the development of target companies. Will we be able to provide more positive feedback to society? As the awareness of common prosperity in China deepens, Japan's asset allocation strategy will continue to change. The future investment landscape will focus on whether a company's growth

provide positive benefits for society. Instead of focusing predominantly on scale, we will focus more on quality and areas that we believe to be more sustainable and look to share opportunities for growth in this new phase with our investors. 下面请陈雷为大家介绍季派2021年第四季度及前年度的财务概况,谢谢。 I will now turn the call over to Eddie to go through the financial results for the first quarter and full year of 2021. Thank you. Thank you, Nizong. We are encouraged to see the other products, including insurance, accounted for 6.4% of the aggregate value of wealth management products distributed in the first quarter, compared to 4.3% in the last quarter, as we continue to further diversify our product categories. and fixed income products accounted for 2.3% compared to 71.5% in the last quarter. Now I will walk you through our financial highlights for the fourth quarter and the full year ended December 31st, 2021. Next revenues for the fourth quarter of 2021 were RMB 70.4 million, a decrease of 28.2% from RMB 98.0 million in the corresponding period in 2020. For the full year 2021, net revenues were RMB 359.1 million, a decrease of 7.5% for RMB 388.2 million in 2020. Operating costs and expenses for the fourth quarter of 2021 were RMB 89.3 million, a decrease of 2.3% from RMB 91.4 million in the corresponding period in 2020. For the full year 2021, operating costs and expenses for RMB 360.2 million, a decrease of 14.8% from RMB 422.6 million in 2020. Net loss attributable to ordinary shareholders for the first quarter of 2021 was RMB 240.3 million as compared to net income attributable to ordinary shareholders of RMB 2.0 million from the corresponding period in 2020. For the full year 2021, net loss attributable to owner-shareholders was RMB 267.9 million as compared to RMB 31.4 million in 2020. Net loss attributable to owner-shareholders per basic and diluted American deposit share for the first quarter of 2021 was RMB 7.30 and RMB 7.30 respectively, as compared to net income attributable to owner-shareholder per basic and diluted ADS of RMB 0.06 and RMB 0.06 respectively from the corresponding period in 2020. For the full year 2021, net loss attributable to owner-shareholder per basic and diluted ADS was RMB 8.08 and RMB 8.08 respectively as compared to RMB 0.94 and RMB 0.94 respectively for 2020. As of February 25, 2022, we have repurchased 1,922,180 ADS as part of the company's 24-month share repurchase program of up to U.S. dollar 10 million announced in February 2020 at a total cost of U.S. dollar 2,109,849, inclusive of transaction charges, unrelated to. That concludes our prepared remarks. I will now turn the call back to the operator to begin the Q&A session. Operator?

Thank you. The question and answer session of this conference call will start in a moment. As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the pound key. Please stand by while we compile in a roster. Our first question comes from Yuhua Li with UBS. Your line is open.

Hi. Thank you for giving me this opportunity to ask questions. I have one question. Can management talk about the company's product performance in this quarter? And can you share more on your asset allocation transformation strategy?

Thank you for your question. In 2021, in the face of complex and advanced international environment and many challenges such as the spread of the epidemic in China, the Chinese government still insists on steady progress, scientific cohesion, epidemic prevention and control, and economic and social development. Last year, GDP rose by 8.1%, and the market share rose by 4.0%. But from a global perspective, the recurrence of the epidemic and uncertainty, plus inflation pressure, Thank you for your question.

In 2021, in the face of the increasing challenges brought by the complex international environment and domestic pandemic resurgence, China continues to seek stable progress through coordinated pandemic prevention and control measures for economic and social development. China's GDP in 2021 increased by 8.1% a year and 4.0% from the corresponding period in 2020. However, from a global perspective, the recurrence and uncertainty of the pandemic coupled with inflationary pressure will continue to affect the investment sentiment among China's worst individuals.

We see the asset allocation of Chinese investors

Moving in the direction of more diverse education, in line with the long-term shift from real estate to auto assets, equity products are becoming an important trend. E-Pi is committed to focusing on asset allocation and product transformation. It continues to focus on equity and sector-market products, mutual fund products, and other network asset products.

In terms of equity products, in 2021, the number of listed enterprises invested by G-Pi in the previous year reached 26. The main focus is on the technology, medical, and consumer channels. Of the listed enterprises invested in the fourth quarter, six of them reached. In the future, the company will also combine the U5 Fund, S Fund, and Zitou to use the advantage of the industry to raise investment opportunities for customers.

In terms of equity products, the number of list issuers with underlying assets in CPI's private equity fund reached 26 for the whole year of 2021, and six of them were list issuers in the both quarters covering areas including high-tech, healthcare, and consumption industries. In the future, the company will also select founder funds, secondary funds, and direct investment portfolios to actively explore investment opportunities for clients by refining our focus and elaborating our advantages in the industry. We continue to further diversify our strategies for secondary market equity products. With the current asset under management reaching RMB 1.5 billion, offering products with diverse strategies from aggressive to conservative, as well as quantitative and high-frequency trading, stock picking, equity investors could effectively allocate assets and adapt their strategies to the complex and changing macro environment.

In 2012, the public market products funded by the four seasons, including public funds, accounted for 88.2% of the total revenue. In addition, the revenue of insurance and other products is 4.3% and 6.4% of the total revenue of three seasons, compared to the revenue of fixed income products. In the fourth quarter, secondary market equity fund products, including mutual funds, accounted for 88.2% of Japan's equity value of wealth-managing products distributed.

In addition, other products, such as insurance, accounted for 6.4% of the aggregate value of wealth management products distributed compared to 4.3% in the last quarter. Each income product accounted for 2.3% compared to 71.5% in the last quarter. As of December 31, 2021, the simulated amount paid out for the relevant product was RMB 9.83 billion.

DPI has committed to the implementation of our precise key client customization strategy

providing multi-to-one service group based on investor demand for financial product allocation among real estate, secondary market, private equity, and mutual funds, providing investors with more professional and efficient investment strategies and customer services to meet their diversified wealth management demands. 我们对财富管理行业的发展空间

Thank you very much.

We remain confident in the company and the long-term development of the wealth management industry. EPI will continue to focus on our perfect key client customization strategy as we implement our asset transference system, providing high-quality service to investors and continuously improving the company's profitability. We will remain committed to becoming one of the top wealth management and asset management brands for high net worth individuals in China. Thank you.

We are now approaching the end of the conference call. I will now turn the call over to JUPAI's IR Director, Eddie Guo, for closing remarks.

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

Thank you for your participation. Thank you for your participation in today's conference. You may now disconnect. Good day.