Q4 2021 Puyi Inc Earnings Call
[music].
Ladies and gentlemen, welcome to <unk> incorporated fiscal year 2021 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 replay purposes on the company's website I'd like to turn to me over to your first speaker today, Ms. Jean Hu, who use general manager all financial reporting Department. Thank you Pease go ahead.
Thank you operator, good evening welcome to our earnings conference call for the fiscal year ending June 30th Plenty Valley. One our annual report on form 20-F has allowed it 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 Securities Litigation Reform Act of 1995. That's yourself. These statements may be impacted by a number of risks and uncertainties that could cause our actual results to differ materially from those.
As projected or anticipated such risk and uncertainties include but not limited to those I like it in our filings with the SEC, including our 20-F, we do not undertake any obligation to update this forward looking information, except as required under the co Los.
With us today are our Chief Executive Officer, Mr. Young written and Chief Financial Officer, Mr. Hu.
Mr. Ron will walk you through our business and financial connections of the fiscal year 2021 and he together with Mr. Hu will answer your correction after the prepared remarks.
Now I will turn the call over to Mr. Don.
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Good evening, everyone. Thank you for joining us today on the earnings conference call for the fiscal year ended June 30, 'twenty 'twenty. One here with me is our Chief Financial Officer, Mr. <unk>, who will begin today's call with an overview of our financial and operational result for the fiscal year 2021 followed by a brief discussion for our.
Business outlook for the fiscal year told me 22, we would take your questions. After the report.
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Yeah.
First let's take a look at our business development in the fiscal year 2021 in the past fiscal year in light of the continued spread of COVID-19 epidemic.
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Isn't it drove a solid management.
Diligently with all of our employees.
Our total net revenue, which I M. B 191.2 million U S. Dollar $35.0 million, representing an increase of 14.747, 7% over last year in particular, the income generated from public raised fund products hit a new record.
Rich CRO from RMB 48, eight medium into fiscal year 'twenty 'twenty to RMB 128, 5 million U S. Dollar 19, nine medium in the fiscal year, probably in 'twenty, one when you're setting a significant increase of 163.4% in our pocket.
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First we focused on sales all standardized products and our business all public raised some products continue to grow rapidly.
The number of clients of all our public raised some products increased significantly by 68, 5% for more than 206000 as of June 30, plenty plenty to more than.
442000 as of June 30, 'twenty upon one and.
Aggregate transaction value of all about it.
Profile increase.
<unk> increased.
By 148, 9% from approximately.
Hi, I'm being.
Fixed point, even in the year ended June 32022, approximately RMB 17, 1 billion U S. Dollar $8.0 billion in the year ended June 30, 2021 in particular more than 430000 clients in Russia.
In public raised from product portfolios, our Colorado for approximately 97, 4% of the total number of cars of our public raise fund products.
Yeah.
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In particular.
More than 430000 clients invested in public raised fund product portfolios.
Accounting for approximately 90.
97, 4% of the total number of clients of our public raised fund products.
Meanwhile, the transaction value.
Our public raised some product portfolios reached approximately RMB.
11.9 billion.
Accounting for approximately 69, 8%.
Of the total transaction value of our public raised some product.
In addition to a public to public raised from product portfolios developed and managed by our in house in Rosslyn.
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In addition to the public raised fund product portfolio developed and managed by our in House investment and research team restarted cooperating with top public raised fund managers in China, such as China asset management solved in asset management and I go on industrial fun to develop diversify.
And we've all things the folio self public raised some products for us leveraging that strong in lesson as for such capabilities. All of the above mentioned products received positive feedback from the market.
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Susan Dorr clips and substantial attention from Lucerne.
Finally, as I said to you it's helpful.
Second we accelerated the professionalism and specialization of our sales team and achieve our target in the construction progress of our branch office.
The progress of enhancing our sales team mainly included the falling two aspects.
One hand in order to adapt to the transformation of the wealth management market to standardized product model, we have launched branch office and economical at the web series in China, and then we put it professionals financial advisers, I think industrial results and specialization.
Wealth management. This professional specialized team of financial advisors aimed to provide competitive.
Wealth management service or family financial assets, comprising mainly portfolios all funds and insurance recommendation for the emerging middle class and affluent individuals and families leveraging the strong support from our tech knowledge operations and product investment and research team.
By August 21, we have established branch office in Guangzhou, Dongguan citizen and other cities.
We recruited a team of more than 200 professional in house financial advisors.
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On the other hand, we continue to classify our sitcoms into ordinary seek clients.
<unk>, six <unk> and financial adviser, which we're under a multilevel Benjamin and cooperation.
L L. A thick high and so we have high put up it productivity.
And expertise stand out and have it become a strong driving force for our professionalism process.
Meanwhile, we have also started digital upgrade of all of the kinds of social e-commerce platform to achieve more efficient multilevel marketing strategy.
Empowered by New media, such as mini program at Wechat Public account Alicia media accounts, we have said it our clients and launching digital and social online activities. So ex to achieve a more comprehensive companionship for the tie in of our psychiatrists.
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First we enhanced our capability of digital operations to achieve more comprehensive client service in the past fiscal year, we have initiated a series of upgrades of our information technology infrastructure.
Including the setup effect data analysts perform and spot operations platform to ourself, if a multi dimension operating tooth such as automatic grouping of multilevel crius attachment of different packs to different clients, but they.
Guitar collection and storage from mall type platforms.
That's why all S. Visualize data trucks is upgraded operating tooth can ensure more accurate and it fiction communication between our Cai is enough, which in turn increase our current level of satisfaction and their race of kinds retention and conversion.
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Sure.
Fourth we continue to invest in the construction and upgrade of technology platforms to increase efficiency and reduce costs.
The construction and upgrade of information technology infection have been widely increasing service.
He definitely.
Service capability in financial industry in the past fiscal year, we have implemented the following three initiatives for our information technology inflection.
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Of course, we have to continually to optimize our Cogs transaction system of public raised some products, which enable online transactions by clients and simplify repeat purchase any weapons.
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Second we launched a new comprehensive full cycle or like transaction system for privately raised fund products in December 2020, which simplify our sales process and increased transaction efficiency of our privately to raise fund products.
Thus, reducing our operating closest.
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First we continue to optimize the eye financial planner, App, which is worse.
Got it with professional solution models for family financial asset allocation and adaptation system for both financial advisors and see clients I financial planner focus on improving the level of activity and stickiness of our financial advisors, and see Cai and achieving the multilevel operation and management of financial Adam.
Risers and seek clients and empowering financial advisors and Sitka is to provide our Kyle if scientific customized family financial asset allocation service.
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Second we will briefly discuss our financial condition for the fiscal year 2021 in the past fiscal year net revenues.
Increase year on year by 47.7% from RMB 129.5, mediums to RMB $193.0 million U S. Dollar $35.0 million now next turn to each individual business lines.
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Yeah.
First businesses line, all wealth management service.
Revenues generated from our wealth management service increase year on year by 64, 60, 65, 9% from RMB 106 points for medium to RMB 106, 17, 6.6 million U S dollar $31.0 million in particular.
Net revenues generated from distribution of public raised fund products increase year on year by 163, 4% from RMB 48.8 medium to RMB $128 five medium used.
Dollar 19.9 medium such increase was primarily due to an increase in commission income, including management fee as a result of the significant increase in the distribution and the actual acute accumulated balance off the transaction value of public restroom products.
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Net revenues generated from distribution of privately to raise fund products increased year on year by seven 2% from RMB 44.5 medium to RMB 47.7 medium U S dollar seven 4 million.
The increase was primary due to the increase in commission income, including management fee. All private today, you raised from products partial.
Partially offset by the decreasing performance space fee.
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Net revenues generated from distribution of auto financial products I am.
300000 U S. Dollar 46000, representing a 97, 7% year on year decrease from RMB $15.0 million. The decrease was primarily because we have focus on distribution on some products and cease to open new exchange of the Miss or products since October 2019.
And we raised receive management fee in the past fiscal year from the existing products only.
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And second business nine our asset management service net revenues generated from S. Atlanta service for this past fiscal year were RMB $18.0 million U S. Dollar $3.0 million, representing a 41, 5% year on year decrease from RMB $23 million.
This decrease was primarily due to a decrease in performance based carry interest income however, our AUR significantly increased to RMB, one 1 billion.
0.2 billion as of June 30, 2021 from RMB <unk> 8 billion as of June 32020, we are confident that the continued increase of our U M is expected to result in organic growth in our future income.
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Sure.
And the last but not least.
Yes elaborate on a strategy planning on all up for the fiscal year 2022.
Excuse me as the epidemic has been brought under control China's economic has gradually returned to the check of stable growth. According to the gunman's common plus parity policy of increasing the income off of low income groups expanding middle income groups in the 14 five year plan.
From 'twenty to 'twenty, one to 'twenty quantified the number of middle class and affluent individuals and family in China will increase with certainty.
It's the company focusing on providing wealth manager service for emerging middle class and affluent population, we have met those historical period of development opportunities.
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Yeah.
In the next fiscal year, we will focus on sales organization construction.
<unk> technology operations, and other effects and constantly build and strengthen our cost competitiveness as follows.
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First we will focus on their professionalism and specialization of our sales force of one thing to continue our branch office and on the other hand to achieve the professionalism of our sitcoms.
The construction of a branch office, it's one of the key measures for us to promote the professionalism of our sales force.
In the next fiscal year I'll be this focus is to continuously strengthen the professional capability of the established branch office to support the financial advisors and improve our overall operation and service capability.
Lucas on the improvement of the delivery performance of our French office and a level of persist certainly some of financial advisors.
Is that after all.
Or is that off on the number of branch office and financial advisors.
In the short term the construction of <unk>.
Branch offices and financial advisors team will incur finished goods expenditures, which adversely affect the company's operating cash flow and profits. However.
However, our management agrees that this initiative is one of the court.
Strategies for the company to achieve transaction value of RMB $100 billion in the future and Benjamin Lu in premise strategy firmly and Effectivity.
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Yeah.
But our sales channels all sitcoms, we will optimize the existing FIC try and team to achieve better compliance efficiency and professionalism.
On the one hand, we will graduate to remediate our corporation with C class, there's no productivity and weak service capability on the other hand reflect a group of capable and proactive and clients from the existing six clients, so crowded with them into professional specialized financial advisors.
The capability of financial asset allocation for enabling systems, such as science and technology investment in education operation and training.
Yeah.
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Yeah.
Second we will focus on digital transformation and continue to strengthen the construction of information technology and digital operating center.
As of June 30, 2021 we have upgrade POI from up to 5.0 promotion and I financial Pella Apt to 2.0 version in the future. In addition to continuing to improve the both systems, we will focus on the construction of institutional business system.
In Western and advisory business system and asset allocation consolidated nation system.
At the same time, we will start to use the existing technology operation capability to empower external partners and try to stop software as a service cooperation with external channels.
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In terms of digital construction will rely on the established digital operation Center and leverage the digital intelligent operations system on the one hand to effectively empower financial adviser to gain insights into kai and needs and improve their professional capability to achieve more.
Eviction Cryan acquisition and.
On the other hand to analyze client behavior.
Data analysts to more accurately respond to the individual needs of.
Science.
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Total Chico, California.
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Well, it's I mean people kind of forfeiture tonioli to Thomas's tissue popcorn shootouts wasn't quite simple, Fortunately python and thoughtfully pursue similar footsteps.
First we will focus on feature portfolio products to lesser differentiated our financial needs of middle class families and cooperate with top financial institution to strengthen our investment and research capability.
Our Cogs Prime base is emerging middle class and affluent population, whose financial risk appetite is related for the medium and low in order to better match, our risk appetite, we S N independent buy side investment advisor.
And so we're really take product portfolios a pilot for <unk>.
<unk> raised fund products and funnel funds of private or raise fund products as our featured products.
In terms of public raised from products after free heaters are polishing.
The management team for public raised some products has demonstrated strong professional investment English first.
Capability for solid performance of our product portfolios.
In the next fiscal year with determined to focus on poverty raised from product portfolios developed by our in house team supplemented by external channels.
In terms of time and need to raise fund products. We're determined to focus on the distribution of funnel funds developed by the leading fund managers such as C. I C C coating and China emotions.
At the same time, we will continue to enhance our capability to achieve the measure of our existing privacy to raise fund of funds products.
And develop more pooey feature parity to raise funding on some products.
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In general he touched upon machine well isn't that something about some wage on costs on the taxi fleet jockey the time for so long for this.
So just shoot for that cohort.
Hudson, who don't talk about taxes.
Yeah.
We will always be kind of oriented and adhere to our mission of advanced with financial advisors and become the wealth gatekeeper of middle class and affluent family in China and continue to create value for our clients financial advisors and shareholders.
This ends for the prepared remark now we are open for questions operator. Please.
As a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound or hash key.
Please standby, while we compile the Q&A roster.
Once again, if you wish to ask a question. Please press star one on your telephone and wait for a name to be announced.
Once again, if you wish to ask a question at Star one on your top off on keep bad.
Yeah.
Yeah.
There are no further questions at this time please continue presenters.
There's no question at this time, there is something wrong with all lines. Today, we are very sorry for your inconvenience, we will upload a full transcript on our website. So if you're interested please go to our website.
For the full transcripts.
Oh, there is no other comments. Thank you everyone for attending our fiscal year 2021 earnings call. If you have any further questions. Please feel free to contact us. Thank you very much operator.
Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
Yeah.
Okay.
[music].
Yeah.
[music].
[music].
Ladies and gentlemen, welcome to <unk> incorporated fiscal year 2021 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 replay purposes on the company's website I'd like to try to meeting over to your first speaker today Ms. Jean Hu.
Who used general manager all financial reporting Department. Thank you Pease go ahead.
Thank you operator, good evening welcome to our earnings conference call for the fiscal year ended June 30, 'twenty one our annual report on form 20-F has allowed it to the website of U S Securities and Exchange Commission earlier today and is also available on our IR website.
Before we continue please know that the discussion today will contain forward looking statements.
The safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995, that's you'll see all 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 all I did in our filings with the SEC, including our 20-F, we do not undertake any obligation to update this forward looking information except as required under the co Los <unk> joining us today are our chief Executive Officer, Mr. Young in and shift financial Officer Mr.
I mean, who.
Mr. Ron will walk you through our business and financial connections after fiscal year 2021 and he together with Mr. Hu answer your correction. After the prepared remarks, now I will turn the call over to Mr. Dutton.
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Yeah.
Good evening, everyone. Thank you for joining us today on the earnings conference call for the fiscal year ended June 30, 'twenty 'twenty. One here with me is our Chief Financial Officer, Mr. <unk>, who will begin today's call with an overview of our financial and operational result for the fiscal year 2021 followed by a brief discussion for our.
Business outlook for the fiscal year told me 22, we would take your questions. After the report.
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Hi, Dan.
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She woman so we all know that he's talking about.
First let's take a look at our business development in the fiscal year 2021 in the past fiscal year.
The continued spread of COVID-19 epidemic, we achieved finishing two.
Even if growth F our management.
Diligently with all of our employees.
Our total net revenue, which I M. B 191.2 million U S. Dollar $35.0 million, representing an increase of 14.747, 7% over last year in particular, the income generated from public raised some products and you will recall.
Rich CRO from RMB 48, eight medium into fiscal year 'twenty Pompey to RMB 128, 5 million U S. Dollar 19, nine medium in the fiscal year 2021 when you're.
Setting a significant increase of 163.4% in the past fiscal year, we may need to make the following progress.
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And should that change so das systems downhole frankly.
First we focused on sales all standardized products and our business all public raised some products continue to grow rapidly.
The number of clients of our public raised some products increased significantly by 68, 5% for more than 206000 as of June 30, plenty plenty to more than.
442000 as of June 30, tiny tiny one and.
Aggregate transaction value of our property.
<unk> increased.
Increased rig do they.
By 148, 9% from approximately.
Hi, I'm being.
Fixed point in the year ended June 32022, approximately RMB 17, 1 billion U S. Dollar $8.0 billion in the year ended June 30, 2021 in particular more than 430000 clients a weapon.
In public raised from product portfolios, our Colorado for approximately 97, 4% of the total number of clients of our public raised fund products.
Yeah.
Yeah.
Oh I think the line is breaking let me repeat.
In particular.
More than 430000 clients invested in public race fun product portfolios.
Accounting for approximating the lightest point.
97, 4% of the total number of clients of all the public raised fund products.
Meanwhile, the transaction value of our public raise some product portfolios reached approximately RMB.
11.9 billion.
Accounting for approximately 69.8%.
Of the total transaction value of our public raised some products.
In addition to a public to public raised some product portfolios developed and managed by our in house in Rosslyn.
Okay.
Okay, now, okay and rich.
In addition to the public raised fund product portfolio developed and managed by our in House investment and research team restarted cooperating with top public raised fund managers in China, such as China asset management solved in asset management and I go on industrial fun to develop diversify.
And we've all things the folio self public raised some products for us leveraging that strong lesson is for such capabilities. All of the above mentioned products received positive feedback from the market.
Yeah.
She also towards the Gela Sarnia.
Watches and Joshua it's just I'm going to suggest that E G.
So we are she Sanjay yeah, yeah yeah.
He played I've seen some glass half full but anyhow, here's a fun fact alpha.
Then I took the time you finish it's you don't finish if I'm going to suggest that.
When she says she does it.
Yeah.
Shang Chuang so its all more you'll see that you'll need to see a hunting and fishing.
If she needs has just got a cookie reading Timesheet Korean Cortez Susan.
He brought.
North Huntington to a hub for really true we don't quote sometimes you for each action she called change launches how pitiful.
He is without hurting our U N body.
In bed Guangzhou.
Susan Dorr clubs has just changed at times just on Lucerne.
Finally, as I said to you it's helpful.
Second we accelerated the professionalism and specialization of our sales team and achieve our target in the construction progress of our branch office.
The progress of it having our sales team mainly included the falling two aspects.
One hand in order to adapt to the transformation of the wealth management market to standardized product model, we have launched branch office and economical at the web series in China, and it recruited professionals financial advisers, I think industrial results and specialization.
Wealth management. This professional specialized team of financial advisors aimed to provide competitive.
[noise] wealth Memphis service, all family financial assets, comprising mainly portfolios all funds and insurance recommendation for the emerging middle class and affluent individuals and families leveraging the strong support from our tech knowledge operations and product investment and research team.
By August 21, we have established branch office in Guangzhou Dongguan citizen in other cities and recruited a team of more than 200 professional in house financial advisors.
Well and then just your take on saying it was home to Cook with Ascension quantity E G.
If she calls kind of triage hundreds of genes once a cohort toy artful.
How much and when it goes to Washington, They're telling me it paid off.
Well I guess, you don't want to Cook with Georgetown Buda and wash it and she was a passage.
Well, many ito a P pes impact homes don't hock.
Switching Houghton she made sure that.
Scheduled owns a cohort that has shown support search and why the chance off with them.
Yes, it's almost a cohort to cook with a good window a payback.
Yeah.
On the other hand, we continue to classify our C kinds into ordinary see clients.
<unk>, six <unk> and financial adviser, which we're under a multilevel Benjamin and cooperation alarm bells and elite seek clients with high put up it productivity.
And expertise stand out and have it become a strong driving force for our professionalism persists.
Meanwhile, we have also started digital upgrade of all of the kinds of social e-commerce platform to achieve more efficient multi level marketing strategy.
Empowered by New media, such as mini program at Wechat Public account Alicia media accounts, we have said it our clients and launching digital and social online activities. So ex to achieve a more comprehensive companionship for the tie in of our psychiatrists.
Yeah.
So China clashed with Dominion shapes chime in it's you shouldn't cookware Fortunately.
But in China, and they all need posh, which you can tie to that.
She intelligent.
Homegrown cocoa for instance, you see field change disease towards channel switches Eaton shoot Jeep could show up in some yet she won't go away with the Union Gucci should Oklahoma City cohort G. She can judge it.
The whole don't teach and those cohorts are hot new G four totally.
Okay.
First we enhanced our capability of digital operations to achieve more comprehensive client service in the past fiscal year, we have initiated a series of upgrades of our information technology infrastructure.
Including the setup effect they've had analysts praful.
Operations platform.
It could ourself as a multi dimension operating tooth such as automatic grouping of multilevel crius attachment of different packs to different clients, but data collection and storage from mall type platforms.
That's S visualize data trucks. These upgraded operating tooth can ensure more accurate and it fiction communication between our Cai is enough, which in turn increase our current level of satisfaction and their race of crimes retention and conversion.
Good sushi gigantic because if you had a change to the total pizza as Joey jumped each of them but.
Susan would you know how much cushion you don't can't you use homeaway goes to Jean Booties and that neither chi twisting volatile are.
Are you talking in fact could you P type cancer Fund me constitutes what changed in the Central Zone.
Okay.
Fourth we continue to invest in the construction and upgrade of technology platforms to increase efficiency and reduce costs.
Construction and upgrade of information technology inflection or have been widely increasing service.
He definitely increased service capability and financial industry in the past fiscal year, we have implanted the falling free initiatives for our information technology infrastructure.
Yeah.
E C.
He should get going with your question.
Uh huh.
So enjoy yourself.
Clarke, which yeah sure they'll Cook was yeah. It sounds as though you did you forego foothold agenda conduct gender.
Of course, we have to continually to optimize our Cogs transaction system of public raised some products, which enable online transactions by clients and simplify repeat purchase any weapons.
I mean.
Yeah, sorry, Yeah, you song Shan Shan Shan something channels and Joe you should have been sushi O clock.
I thought you had quite a similar sort of ocean tea session with Jim does hinge on salary Gee isn't consuming something.
Second we launched a new comprehensive full cycle or like transaction system for privately raised fund products in December 2020, which simplify our sales process and increased transaction efficiency of our privately to raise fund products.
Thus, reducing our operating closest.
Right.
They'd be attached with it that you should have IV sets you off.
Gosh, it's only one quarter 10 minutes it paints a food court TV.
So don't you send the test of Hudson Cook with a way to finance them.
Chung values has cyclical so cook with ascension.
Wendy.
Julie detached Hudson's cookbook weight cohorts you're going.
Christian good and things of the shocking Juno paid before.
Yeah.
First we continue to optimize the financial planner App, which is worse.
Got it with professional solution models for family financial asset allocation and adaptation system for both financial advisers and clients.
Financial pillar focus on improving the level of activity and stickiness of our financial advisors and seek Kai it's achieving the multilevel operation and management of financial advisors and clients and empowering financial advisors and Sitka is to provide our cryo if scientific customized family fun.
S locations service.
Yeah, hi, or juncture and doctors how concerning our U K there is a change in call.
And tiny handful yeah, so luisa.
Yeah.
The junior that maybe either staying in zone five and this is too cheap.
Oh, yeah, good to tell you it was yet.
Second we will briefly discuss our financial condition for the fiscal year 2021 in the past fiscal year net revenue increase year on year by 47.7% from RMB 129.5 medium to RMB $193.0 million.
U S. Dollar 29.6 million now next turn to each individual business lines.
Yeah. So its yes, its high for quite a few.
Are they are you are you are they are your tenure.
Powerful Bonnie yeah, so in a way that maybe either by E N.
Juniors and maybe either E N centre up absolutely.
Got you Don.
Jim I'm going to get into who already are you talking yet.
So in a way that may be either E. N. B Junior then you'd be sitcom Bye Bye Boston, one yet thoughtful sitting down a bit from the Baidu was.
Understood.
So we are seeing like almost you didn't have that shows a way more jeep drink milk being one of the questions on that.
So do you quantify it so it was involved.
Yeah.
First businesses line, all wealth management service.
Revenues generated from our wealth management service increase year on year by 64, 60, 65, 9% from I am being a 106 points for medium to RMB 106, 17, 6.6 million U S dollar $31.0 million in particular.
Net revenue was generated from distribution of public raised from products increase year on year by 163, 4% from RMB 48.8 medium to RMB $128 five medium U S. Dollar 19.9 medium such increase was primarily due to an increase in commission.
Income, including management fee as a result of the significant increase in the distribution and the actual acute accumulated balance off the transaction value of public restroom products.
Similarly, you can argue tiny so little ways, I mean beats a chance you might just as Sidney Huang.
The junior that maybe suggest about Sun art van.
But when she does her.
Since I'm, sorry, yes, the English and whats your intention quantity fits so well with it.
Yes.
That revenue was generated from distribution of privately to raise fund products increased year on year by seven 2% from RMB 44.5 medium to RMB 47.7 medium U S dollars seven 4 million.
The increase was primary due to the increase in commission income, including management fee. All private today, you raised from products partial.
Partially offset by the decreasing performance space fee.
So you'd have to go all the time, she army or your time, there so little ways, and maybe especially each union M. D E chance I'm back east in satellite Gamestop absent Joseph she didn't she.
Yeah, absolutely I've seen way women's home Army equal, yes, each and Sanofi GCG Nate She had talked to you at all times in social.
And cheap zilch pension dose for phase two.
Net revenues generated from distribution of auto financial products I am be.
300000 U S dollar 46000, representing a 97.7% year on year decrease from RMB $14. One medium. The decrease was primarily because we have focus on distribution on some products and cease to open nearly shade of the miss or products since October pardon me in 19.
It was great to see management fee in the past fiscal year from the existing products only.
Alright.
It's just how quanta you.
Finances, how quanta, yet so we'll wait a minute each I, sometimes it's just they were gas away b.
Be cheer them being out to somebody and Sandy I sound like I saw that but then it's just you don't.
Yes.
I mean, we've been shifted.
J S households.
It's just hard to go out in time she Greenville.
Earning you'll reassess.
E Sun's out, though early our Union Gilead Sciences.
C. A R E.
Trace elements just aren't Guanines green was so important for.
Tell me what she just how quiet until you put it that way that two important stuff.
And second business Tonight, I'll ask that management service net revenues generated from S. Among them the service for the past fiscal year were RMB 13.5 medium your solar to play one medium representing a 41, 5% year on year decrease from RMB 23 million.
This decrease was primarily due to a decrease in performance based carry interest income however, our AUR significantly increased to RMB, one 1 billion.
0.2 billion as of June 30, 2021 from I M. B 0.8 billion as of June 32020, we are confident that the continued increase of our U M is expected to result in organic growth in our future income.
Yeah.
So I hope what Joan jump shoot guns to wait I think weight watchers that law.
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What you do when things and sound great though.
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Its almost its own pets G suite, jockeying showdown sounds weight chickens and job well done.
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So your fleet Gotcha Jurgen.
Titusville pardon me for the answer.
I'm shocked E G.
Jacques.
Oh geez.
And the last but not least less.
Les elaborate on a strategy planning on all up for the fiscal year 'twenty to 'twenty two.
Excuse me as the epidemic has been brought under control China's economic has gradually returned to the check of stable growth. According to the gunman's common plus parity policy of increasing the income off of low income groups expanding middle income groups in the 14 five year plan.
From turnkey Tony wanted to Tom can you quantify the number of middle class in the front of individuals and families in China will increase with certainty.
If the company focusing on providing wealth manager service for emerging middle class and for installation, we have met those historical period of development opportunities.
Right.
Good how are you going to downsize households, with Sketchup punchy cookies, Tom yet, Jim but you'd go.
Well done thoughts all her child Hoffman's question E G to a shop.
In the next fiscal year, we will focus on sales organization construction.
<unk> technology operations, and other effects and constantly build and strengthen our cost competitiveness as follows.
Yeah.
E G ourselves so do you want to train them up easily zaha.
Yeah. So yeah. So it's a household cope with it so I am constantly.
And so from a stewardship, so constituting yourselves.
Why don't you talk about the diet opinion.
The teams don't get CIT bolt ons, how Fox E. Yeah, it's at Hudson Bay, because of its I am just suddenly Kenyan She center Covid are you for it.
And so I'm sure that early test.
Just to sort out, which we are paid for mobile.
So again Guangzhou turns into itself and at me. He said Gee you touched it a J L shaped and she said tends to from Olson. So you need to cancel that sequence the genes changing that's all got cell phone.
And they did you know what you're doing.
Yeah.
It's not one thing it's a summary, so 18 trillion sequencer with estrogen changes social remodel.
You can see.
Right.
Jumping phishing E chip so.
So lumpy.
First we will focus on the professionalism and specialization of our sales force well one thing to continue across all of our branch office and on the other hand torches professionalism of our sitcoms.
Construction of the French office, it's one of the key measures for us to promote the professionalism of our sales force.
Our next fiscal year I'll be this focus is to continuously sharpen the professional capability of the established branch office to support the financial advisors and improve our overall operation and service capability.
Chris on the improvement of the delivery performance of our French office, and a level of persist or only some of financial advisors.
Is that after all.
Or is that off on the number of branch office and financial advisors.
In the short term the construction of <unk>.
Branch offices and financial advisors team will incur finished goods expenditures, which adversely affect the company's operating cash flow and profits. However.
However, our management agrees that this initiative is one of the court.
Strategies for the company to achieve transaction value of RMB 100 billion in the future and Benjamin Lu in premise strategy firmly and Effectivity.
Yeah.
Based on so called what you thought you could wait go shop, so I can't wait to get chips.
I mentioned, New York, Los angles, almost couple do.
You saw them yet.
Junk they acquired Hooper golf ball and input childhood books called Superchurch, who you're talking to puzzle me.
Yeah.
One quick one Shane Cooke will don't shouldn't buy each year.
And the genes on scope homegrown could you tell a joke.
The patient need.
Need towards I don't sell cheesy Union pay it suddenly G. L. Johnson <unk> Johnson's pizza that neither Tanya yeah.
Mutation.
But our sales channels all six lines, we will optimize the existing sick Thai and team to achieve better compliance efficiency and professionalism on the one hand, we will graduate to remediate Our corporation with C class, there's no productivity and weak service capability on the other hand.
A group of capable and proactive and clients from the existing clients to cultivate them into professional specialized financial advisors the capability of financial asset allocation for enabling systems, such as science and technology in Westland and education operation.
And training.
Oh, Gee juggling a lot of traction.
Ishi, John I could suggest you should change and change.
Kids are they are eating in.
Yes, absolutely.
Fastball, who used to dealing with that but I need to have surgery.
We like true Jixi Weinstein sponsorship on why.
Oh, John song and dance dance that you go to.
Yeah, well it shouldn't cost would have pegged it wasn't an issue.
Homestead.
And then John also deal yields could.
So gene and me.
Sounds like fun tungsten catch your wife Wuxi dog the sauce.
Second we will focus on digital transformation and continue to strengthen the construction of information technology and digital operating center.
As of June 30, 2021 we have upgrade pooey from up to 5.0 promotion and I financial Pella Apt to 2.0 version.
The future in addition to continuing to improve the both systems, we will focus on the construction of institutional business system in Western limb advisory business system and asset allocation consolidated nation system.
At the same time, we will start to use the existing technology operation capability to empower external partners and try to stop software as a service cooperation with external channels.
So I supposed to Los Angeles on me constantly telling you Cook.
He used to get 10 does switching launching.
So with that said I mean shouldn't you find yourself falling because she's going to talk as usual teeth.
So I am not going go South Cook Cook.
If I'm here in town called Cocos Shingly box, you can see I'm gonna still contingent besides input.
For example, clothes and shoes.
In terms of digital construction will rely on the established digital operation Center and leverage the digital intelligent operations system on the one hand to effectively empower financial adviser to gain insights into kai and needs and improve their professional capability to achieve more.
Eviction crying acquisition.
On the other hand to analyze client behavior.
Data analysts to more accurately respond to the individual needs of.
Science.
Oh geez.
To a central Hudson.
She paid sometimes Archie when generally tells you too.
Total Chico, California.
China Korea and Italy.
Goes to the question coach and she said she was on top of G for you Josh.
So you changed the telephone Sam Chao Zhang to its own thing can be.
Good holiday she pay pounding the phones in Shanghai.
Sure I'll talk what are your time.
Oh sure junk Jenkins please.
So module Cliff-hang store, that's all equals the twist sometimes.
Almost all of them.
I'm more convinced of the coal jewel Coke grinding Sunday evening.
Thanks Shannon.
Oh yeah.
Do you track them to checking usage data.
Komatsu has being told times seen way too.
E books and pilot going on with whole portfolio. That's all April.
That's similar for me.
These daunting.
It's awesome.
Oh boy it Simeon Pink Panther fourth that's all that's going away.
Thomas's tissue problems with us claims symbol, Fortunately Python and thoughtfully pursue similar force touch.
First we will focus on feature portfolio products to measure divesture related eat financial needs of Middle class families and cooperate with top financial institution to strengthen our investment and research capability.
Our Cogs Prime base is emerging middle class and affluent population, whose financial risk appetite is related for the medium and low in order to better match, our risk appetite, we S N independent buy side investment advisor.
Unswervingly take product portfolios a pilot for.
Public raised fund products and funnel funds of private or raised fund products as our featured products.
In terms of public raised from products after three years of polishing.
Our management team for public raised some products has demonstrated strong professional investment English first.
Ability for solid performance of our product portfolios.
In the next fiscal year with determined to focus on poverty raised from product portfolios developed by our in house team supplemented by external channels.
In terms of time and need to raise fund products. We're determined to focus on the distribution of funnel funds developed by the leading fund managers such as C. I C C coating and China emotions at.
At the same time, we will continue to enhance our capability to achieve the measure of our existing privacy to raise fund of funds products.
And develop more pooey feature parity to raise funding a fun product.
And then Josh don't Judge Egypt on cookies, she told so far.
In general you touched upon machine wasn't that strong, but some wage on Cogs.
We judge the time for so long.
So just shoot for that cohort.
Hudson, who don't talk about taxes.
Yeah.
We will always be kind of oriented and adhere to our mission of advanced with financial advisors and become the wealth gatekeeper of middle class and affluent somebody in China and continue to create value for our clients financial advisors and shareholders.
This ends for the prepared remark now we are open for questions operator. Please.
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Yeah.
Yeah.
There are no further questions at this time please continue presenters.
There's no question at this time, there is something wrong with all lines. Today, we are very sorry for your inconvenience, we will upload a full transcript on our website. So if your interest Chris go to our website.
For the full transcripts.
Oh, there is no other comments. Thank you everyone for attending our fiscal year 2021 earnings call. If you have any further questions. Please feel free to contact us. Thank you very much operator.
Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.