Jupai Reports Second Quarter 2020 Results

SHANGHAI,Aug. 7,2020 -- Jupai Holdings Limited ("Jupai" or the "Company") (NYSE: JP),a leading third-party wealth management service provider,focusing on distributing wealth management products and providing quality product advisory services to high-net-worth individuals in China,today announced its unaudited financial results for the second quarter and six months ended June 30,2020.

SECOND QUARTER AND FIRST HALF 2020 FINANCIAL HIGHLIGHTS

Net revenues in the second quarter of 2020 were RMB108.4 million (US$[1]15.3 million),a decrease of 41.7% from the corresponding period in 2019. For the first half of 2020,net revenues were RMB205.0 million (US$29.0 million),a decrease of 56.1% from the same period in 2019.

For the quarter ended June 30

(RMB '000,except percentages)

Q2 2019

Q2 2019 %

Q2 2020

Q2 2020 %

YoY Change %

One-time commissions

86,510

46.5%

47,785

44.0%

-44.8%

Recurring management fees

67,756

36.5%

32,697

30.2%

-51.7%

Recurring service fees

31,603

17.0%

27,955

25.8%

-11.5%

Other service fees

-

-

-

-

-

Total net revenues

185,869

100.0%

108,437

100.0%

-41.7%

For the six months ended June 30

(RMB '000,except percentages)

H1 2019

H1 2019 %

H1 2020

H1 2020 %

YoY Change %

One-time commissions

145,141

31.0%

87,282

42.6%

-39.9%

Recurring management fees

259,978

55.7%

57,990

28.3%

-77.7%

Recurring service fees

47,893

10.3%

59,753

29.1%

24.8%

Other service fees

13,904

3.0%

-

-

-100.0%

Total net revenues

466,916

100.0%

205,025

100.0%

-56.1%

Loss from operations in the second quarter of 2020 was RMB13.9 million (US$2.0 million),a decrease of 74.8% from the corresponding period in 2019. For the first half of 2020,loss from operations was RMB26.1 million (US$3.7 million),a decrease of 61.1% from the same period in 2019.

Net loss attributable to ordinary shareholders in the second quarter of 2020 was RMB10.5 million (US$1.5 million),as compared to RMB61.0 million from the corresponding period in 2019. For the first half of 2020,net loss attributable to ordinary shareholders was RMB30.4 million (US$4.3 million),as compared to RMB86.6 million from the same period in 2019.

Adjusted net loss attributable to ordinary shareholders (non-GAAP[2]) in the second quarter of 2020 was RMB10.1 million (US$1.4 million),as compared to RMB58.6 million from the corresponding period in 2019. For the first half of 2020,non-GAAP net loss attributable to ordinary shareholders was RMB27.3 million (US$3.9 million),as compared to RMB81.3 million from the same period in 2019.

SECOND QUARTER AND FIRST HALF 2020 OPERATIONAL UPDATES

Total number of active clients[3] during the second quarter of 2020 was 701,as compared to 1,039 active clients during the second quarter of 2019.

The aggregate value of wealth management products distributed by the Company during the second quarter of 2020 was RMB1.9 billion (US$0.3 billion),a 24.3% decrease from the corresponding period in 2019. For the first half of 2020,the aggregate value of wealth management products distributed by the Company was RMB3.3 billion (US$0.5 billion),a 36.8% decrease from the corresponding period in 2019.

Wealth management products distributed by the Company - breakdown by product type

Three months ended

Six months ended

June 30,2019

June 30,2020

June 30,2020

Product type

(RMB in millions,except percentages)

(RMB in millions,except percentages)

Fixed income products

1,825

73%

1,212

64%

3,733

71%

2,183

65%

Private equity products

376

15%

413

22%

961

18%

625

19%

Secondary market equity fund products

70

3%

248

13%

122

2%

454

14%

Other products

222

9%

14

1%

460

9%

73

2%

All products

2,493

100%

1,887

100%

5,276

100%

3,335

100%

Jupai's coverage network as of June 30,2020 included 36 client centers covering 34 cities,as compared to 61 client centers covering 45 cities as of June 30,2019.

Total assets under management[4] as of June 30,2020 were RMB37.6 billion (US$5.3 billion),a 20.0% decrease from June 30,2019.

Assets under management – breakdown by product type

As of

June 30,except percentages)

Fixed income products

16,482

35%

11,949

32%

Private equity products

28,331

60%

23,453

62%

Secondary market equity fund products

945

2%

954

3%

Other products

1,214

3%

1,211

3%

All products

46,972

100%

37,567

100%

[1]The U.S. dollars (US$) amounts disclosed in this press release,except for those transaction amounts that were actually settled in U.S. dollars,are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars (US$) in this press release is based on the noon buying rate on June 30,2020,as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System,which was RMB7.0651 to US$1.00. The percentages stated in this press release are calculated based on the Renminbi amounts.

[2]Jupai's non-GAAP financial measures are derived from adjusting the corresponding GAAP financial measures by excluding the effects of share-based compensation and amortization of intangible assets resulted from business acquisitions.

[3]"Active clients" for a given period refer to clients who purchase wealth management products distributed by Jupai at least once during that given period.

[4]"Assets under management" or "AUM" of Jupai refers to the amount of capital contributions made by investors to the funds managed by the Company,for which the Company is entitled to receive management fees. The amount of AUM of Jupai is recorded and carried based on the historical cost of the contributed assets instead of fair market value of assets for almost all AUM of Jupai. For assets denominated in currencies other than Renminbi,the AUM are translated into Renminbi upon their contribution,without interim value adjustments solely due to changes in foreign exchange rates. As a result,Jupai's management fees for almost all its AUM are calculated based on the historical cost balance of the AUM.

"Jupai's bottom line improved sequentially in the second quarter,as our effective cost control measures helped to offset the market challenges created by ongoing investor caution during the economic recovery following the outbreak of COVID-19," said Mr. Jianda Ni,Jupai's chairman of the board and chief executive officer. "We remain confident in the long-term outlook for Jupai and China's wealth management industry and will continue to focus on controlling costs,providing high-quality products,and optimizing our risk control system."

Ms. Min Liu,Jupai's chief financial officer,said,"Ourtotal operating cost and expenses in the second quarter declined by 49.2% compared with the same period last year while cost of revenues decreased by 42.7%. This is mainly attributable to our continuous efforts to control costs,which we expect will help to further improve our bottom-line and enhance operating efficiencies in the coming quarters."

SECOND QUARTER AND FIRST HALF 2020 FINANCIAL RESULTS

Net Revenues

Net revenuesfor the second quarter of 2020 were RMB108.4 million (US$15.3 million),a 41.7% decrease from the corresponding period in 2019,primarily due to decreases in one-time commissions and recurring management fees. Net revenues were RMB205.0 million (US$29.0 million) for the first half of 2020,a decrease of 56.1% from the same period in 2019.

Net revenues from one-time commissions for the second quarter of 2020 were RMB47.8 million (US$6.8 million),a 44.8% decrease from the corresponding period in 2019,primarily as a result of a decrease in the aggregate value of wealth management products distributed by the Company. For the first half of 2020,net revenues from one-time commissions were RMB87.3 million (US$12.4 million),a decrease of 39.9% from the same period in 2019.

Net revenues from recurring management fees for the second quarter of 2020 were RMB32.7 million (US$4.6 million),a 51.7% decrease from the corresponding period in 2019,primarily due to the decrease in the value of assets under management. RMB5.4 million (US$0.8 million) and RMB11.1 million carried interest was recognized as part of Jupai's recurring management fees in the second quarter of 2020 and 2019,respectively. For the first half of 2020,net revenues from recurring management fees were RMB58.0 million (US$8.2 million),a 77.7% decrease from the same period in 2019. RMB5.5 million (US$0.8 million) and RMB138.5 million carried interest was recognized as part of Jupai's recurring management fees for the first half of 2020 and 2019,respectively.

Net revenues from recurring service fees for the second quarter of 2020 were RMB28.0 million (US$4.0 million),an 11.5% decrease from the corresponding period in 2019,primarily because the Company provided ongoing services to fewer product suppliers. The Company recognized RMB1.5 million (US$0.2 million) and nil variable performance fees in the second quarter of 2020 and 2019,net revenues from recurring service fees were RMB59.8 million (US$8.5 million),a 24.8% increase from the same period in 2019. The Company recognized RMB2.0 million (US$0.3 million) and nil variable performance fees for the first half of 2020 and 2019,respectively.

Net revenues from other service fees for the second quarter of 2020 were nil,the same as the corresponding period in 2019. For the first half of 2020,net revenues from other service fees were nil,as compared to RMB13.9 million from the same period in 2019.

Operating Costs and Expenses

Operating costs and expensesfor the second quarter of 2020 were RMB122.4 million (US$17.3 million),a decrease of 49.2% from the corresponding period in 2019. For the first half of 2020,operating costs and expenses were RMB231.1 million (US$32.7 million),a decrease of 56.7% from the same period in 2019.

Cost of revenues for the second quarter of 2020 was RMB62.1 million (US$8.8 million),a decrease of 42.7% from the corresponding period in 2019,primarily due to decreased compensation to wealth management advisors and client managers,as a result of the decrease in the aggregate value of wealth management products distributed by the Company and the cost control measures the Company adopted. For the first half of 2020,cost of revenues was RMB124.1 million (US$17.6 million),a decrease of 56.4% from the same period in 2019.

Selling expenses for the second quarter of 2020 were RMB24.1 million (US$3.4 million),a decrease of 51.0% from the corresponding period in 2019,primarily due to the decrease in marketing and promotion expenses as a result of cost control and the decrease in revenues. For the first half of 2020,selling expenses were RMB44.0 million (US$6.2 million),a decrease of 57.4% from the same period in 2019.

General and administrative expenses for the second quarter of 2020 were RMB42.7 million (US$6.0 million),a decrease of 52.0% from the corresponding period in 2019,mainly due to the cost control measures the Company adopted. For the first half of 2020,general and administrative expenses were RMB78.0 million (US$11.0 million),a decrease of 48.6% from the same period in 2019.

Other operating income (government subsidies) received by the Company for the second quarter of 2020 was RMB6.6 million (US$0.9 million),an increase of 17.1% from the corresponding period in 2019. For the first half of 2020,other operating income were RMB15.1 million (US$2.1 million),an increase of 169.2% from the same period in 2019. Government subsidies were recorded when received,with their availability and amount dependent upon government policies.

Operating marginfor the second quarter of 2020 was -12.8%,as compared to -29.7% for the corresponding period in 2019. For the first half of 2020,operating margin was -12.7%,compared to -14.3% for the same period in 2019.

Income tax benefits for the second quarter of 2020 were RMB1.4 million (US$0.2 million),as compared to income tax expenses of RMB7.6 million for the corresponding period in 2019,primarily due to taxable losses for the second quarter of 2020. For the first half of 2020,income tax expenses were RMB11.3 million (US$1.6 million),a decrease of 50.4% from the same period in 2019.

Net Loss

- Net Loss

Net loss attributable to ordinary shareholders for the second quarter of 2020 was RMB10.5 million (US$1.5 million),as compared to RMB86.6 million from the same period in 2019.

Net margin attributable to ordinary shareholders for the second quarter of 2020 was -9.7%,as compared to -32.8% from the corresponding period in 2019. For the first half of 2020,net margin attributable to ordinary shareholders was -14.8%,compared to -18.6% for the same period in 2019.

Net loss attributable to ordinary shareholders per basic and diluted American depositary share ("ADS") for the second quarter of 2020 was RMB0.31 (US$0.04) and RMB0.31 (US$0.04),respectively,as compared to RMB1.82 and RMB1.82,from the corresponding period in 2019. For the first half of 2020,net loss attributable to ordinary shareholders per basic and diluted ADS was RMB0.91 (US$0.13) and RMB0.91 (US$0.13),as compared to RMB2.58 and RMB2.58,for the same period in 2019.

- Adjusted Net Loss (non-GAAP)

Adjusted net loss attributable to ordinary shareholders (non-GAAP) for the second quarter of 2020 was RMB10.1 million (US$1.4 million),as compared to RMB81.3 million from the same period in 2019.

Adjusted net margin attributable to ordinary shareholders (non-GAAP) for the second quarter of 2020 was -9.4%,as compared to -31.5% from the corresponding period in 2019. For the first half of 2020,non-GAAP net margin attributable to ordinary shareholders was -13.3%,as compared to -17.4% for the same period in 2019.

Adjusted net loss attributable to ordinary shareholders per diluted ADS (non-GAAP) for the second quarter of 2020 was RMB0.30 (US$0.04),as compared to RMB1.74 from the corresponding period in 2019. For the first half of 2020,non-GAAP net loss attributable to ordinary shareholders per diluted ADS was RMB0.81 (US$0.11),as compared to RMB2.42 for the same period in 2019.

Repurchase of Shares

As of July 31,we had repurchased 320,351 ADSs as part of the share repurchase program of up to US$10 million announced in February 2020,at a total cost of US$348,423,inclusive of transaction charges.

Balance Sheet and Cash Flow

As of June 30,the Company had RMB708.6 million (US$100.3 million) in cash,cash equivalents and restricted cash,as compared to RMB712.3 million as of December 31,2019.

Net cash provided by operating activitiesduring the second quarter of 2020 was RMB41.8 million (US$5.9 million). For the first half of 2020,net cash provided by operating activities was RMB20.6 million (US$2.9 million).

Net cash used in investing activitiesduring the second quarter of 2020 was RMB15.2 million (US$2.2 million). For the first half of 2020,net cash used in investing activities was RMB17.2 million (US$2.4 million).

Net cash used in financing activitiesduring the second quarter of 2020 was nil. For the first half of 2020,net cash used in financing activities was RMB7.1 million (US$1.0 million).

CONFERENCE CALL

Jupai's management will host an earnings conference call on August 7,2020 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time).

Please register in advance for the conference call using the link provided below. Upon registering,you will be provided with a calendar invite with participant dial-in numbers,passcode,and a unique access pin by email. To join the conference,simply dial the number you receive after preregistering,enter the passcode followed by your pin,and you will join the conference instantly.

PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/1172631

A replay of the conference call may be accessed by phone at the following number until August 13,2020:

U.S./International:

+1-855-452-5696 or +61-2-8199-0299

Mainland China:

400-602-2065

Hong Kong:

800-963-117

Singapore:

800-616-2305

Passcode:

1172631

Additionally,a live and archived webcast will be available at http://jupai.investorroom.com.

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

In addition to disclosing financial results prepared in accordance with U.S. GAAP,the Company's earnings release contains non-GAAP financial measures that exclude the effects of all forms of share-based compensation and amortization of intangible assets related to acquisition. The reconciliation of these non-GAAP financial measures to the nearest GAAP measures as set forth in the table captioned "Reconciliation of GAAP to Non-GAAP Results" below.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measure used by the Company may be prepared differently from,and therefore may not be comparable to,similarly titled measures used by other companies.

When evaluating the Company's operating performance in the periods presented,management reviewed non-GAAP net income results reflecting adjustments to exclude the impacts of share-based compensation and amortization of intangible assets related to acquisition,to supplement U.S. GAAP financial data. As such,the Company believes that the presentation of the non-GAAP net income attributable to ordinary shareholders,non-GAAP net income attributable to ordinary shares per diluted ADS and non-GAAP net margin attributable to ordinary shareholders provides important supplemental information to investors regarding financial and business trends relating to the Company's financial condition and results of operations in a manner consistent with that used by management. Pursuant to U.S. GAAP,the Company recognized significant amounts of expenses for the restricted shares,share options and amortization of intangible assets related to acquisition. The Company utilized the non-GAAP financial results to make financial results comparable period to period and to better understand its historical business operations.

ABOUT JUPAI HOLDINGS LIMITED

Jupai Holdings Limited ("Jupai") (NYSE: JP) is a leading third-party wealth management service provider focusing on distributing wealth management products and providing quality product advisory services to high-net-worth individuals in China. Jupai's comprehensive and personalized client service and broad range of carefully selected third-party and self-developed products have made it a trusted brand among its clients. Jupai maintains extensive and targeted coverage of China's high-net-worth population.

For more information,please visit http://jupai.investorroom.com.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things,the business outlook and quotations from management in this announcement,as well as Jupai's strategic and operational plans,contain forward-looking statements. Jupai may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission,in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about Jupai's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: the goals and strategies of the Company and the Company's ability to manage its growth and implement its business strategies; future business development,financial condition and results of operations of the Company; condition of the wealth management market in China and internationally; the demand for and market acceptance of the products the Company distributes; the Company's ability to maintain and further grow its active high-net-worth client base and maintain or increase the amount of investment by clients; developments in relevant government policies and regulations relating to the Company's industry and the Company's ability to comply with those policies and regulations; the Company's ability to attract and retain quality employees; the Company's ability to adapt to potential uncertainties in China's real estate industry and stay abreast of market trends and technological advances; the results of the Company's investments in research and development to enhance its product choices and service offerings; general economic and business conditions in China; and the Company's ability to protect its reputation and enhance its brand recognition. Further information regarding these and other risks is included in Jupai's filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release,and Jupai does not undertake any obligation to update any such information,including forward-looking statements,as a result of new information,future events or otherwise,except as required under applicable law.

Contacts:

Jupai Investor Relations

Phone: +86 (21) 5226 5819

Email: ir@jpinvestment.cn

Philip Lisio

The Foote Group

Phone: +86 (10) 8429 9544

Email: Jupai-IR@thefootegroup.com

--FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Jupai Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

(In RMB,except for USD data)

As of

December31,

June 30,

2019

2020

2020

RMB

RMB

USD

Assets

Current assets:

Cash and cash equivalents

711,205,698

707,516,151

100,142,411

Restricted cash

1,100,000

1,000

155,695

Accounts receivable

-

87,518

12,387

Other receivables

14,125,535

34,670,219

4,907,251

Amounts due from related parties

95,193,003

43,541,114

6,162,845

Other current assets

4,984,541

24,186,127

3,324

Total current assets

826,608,777

811,101,129

114,803,913

Long-term investments

228,950,000

228,000

32,405,769

Investment in affiliates

107,000

103,045,782

14,585,184

Amounts due from related parties -- non-current

229,117,743

229,547

32,441,940

Property and equipment,net

27,834,760

22,931

3,173,901

Intangible assets,net

38,250,479

36,033,002

5,140

Other non-current assets

17,886,020

15,373,685

2,176,005

Right-of-use assets

68,101

50,790,590

7,188,941

Deferred tax assets

4,063

3,800,365

537,907

Total Assets

1,549,746,943

1,500,724,031

212,413,700

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses

58,318,063

59,601,231

8,436,007

Income tax payable

82,208

95,482,256

13,514,636

Other tax payable

695,081

16,956,190

2,399,993

Amounts due to related parties -- current

19,439,664

19,225,850

2,721,242

Deferred revenue from related parties

42,053,959

16,126,895

2,282,614

Deferred revenue

35,674,503

36,508,979

5,167,511

Other current liabilities

78,201,072

58,748,336

8,315,287

Total current liabilities

317,182,550

302,649,737

42,837,290

Deferred revenue -- non-current from related parties

4,917,845

12,401,239

1,755,281

Deferred revenue -- non-current

311,651

1,456,651

206,176

Operating Lease Liabilities -- non-current

28,518,789

16,945,897

2,398,536

Total Liabilities

350,930,835

333,453,524

47,197,283

Equity

1,198,816,108

1,270,507

165,216,417

Total Liabilities and Total Shareholders' Equity

1,700

Jupai Holdings Limited

Unaudited Condensed Consolidated Income Statements

(In RMB,except for USD data and ADS data)

Three months ended

June 30,

2019

2020

2020

RMB

RMB

USD

Revenues

Third party revenues

103,698,922

60,581

8,537,117

Related party revenues

84,003,914

48,559

6,867,073

Total revenues

187,702,836

108,832,140

15,404,190

Taxes and surcharges

(1,833,461)

(394,816)

(55,883)

Net revenues

185,869,375

108,437,324

15,348,307

Operating costs and expenses:

Cost of revenues

(108,523,737)

(62,218)

(8,795,660)

Selling expenses

(49,210,902)

(24,116,445)

(3,461)

General and administrative expenses

(88,926,531)

(42,685,599)

(6,041,754)

Other operating income-- government subsidies

5,621,863

6,583,956

931,898

Total operating cost and expenses

(241,039,307)

(122,360,306)

(17,977)

Loss from operations

(55,169,932)

(13,922,982)

(1,970,670)

Interest income

1,882,685

1,449,615

205,180

Investment income

437,815

822,468

116,413

Other income

267,801

1,064

198,732

Total other income

2,588,301

3,676,147

520,325

Loss before taxes and loss from equity in affiliates

(52,581,631)

(10,246,835)

(1,450,345)

Income tax (expense) benefit

(7,616,808)

1,352,337

191,411

Loss from equity in affiliates

(3,633)

(2,693)

(308,940)

Net loss

(63,325,072)

(11,077,191)

(1,567,874)

Net loss attributable to non-controlling interests

2,280,249

585,148

82,822

Net loss attributable to ordinary shareholders

(61,044,823)

(10,492,043)

(1,485,052)

Net loss per ADS:

Basic

(1.82)

(0.31)

(0.04)

Diluted

(1.82)

(0.31)

(0.04)

Weighted average number of ADSs used in computation:

Basic

33,622,879

33,446,631

33,631

Diluted

33,631

Jupai Holdings Limited

Unaudited Condensed Consolidated Income Statements

(In RMB,except for USD data and ADS data)

Six months ended

June 30,

2019

2020

2020

RMB

RMB

USD

Revenues

Third party revenues

180,086,252

122,648,763

17,359,806

Related party revenues

289,830,779

82,923,125

11,737,007

Total revenues

469,031

205,571,888

29,096,813

Taxes and surcharges

(3,001,274)

(547,298)

(77,465)

Net revenues

466,915,757

205,024,590

29,019,348

Operating costs and expenses:

Cost of revenues

(284,407)

(124,138,835)

(17,570,712)

Selling expenses

(103,371)

(44,040,167)

(6,233,481)

General and administrative expenses

(151,686,377)

(78,680)

(11,951)

Other operating income-- government subsidies

5,863

15,133,115

2,141,953

Total operating cost and expenses

(533,916,292)

(231,079,567)

(32,707,191)

Loss from operations

(67,000,535)

(26,054,977)

(3,687,843)

Interest income

3,100

2,629,620

372,199

Investment income

2,310

1,797,173

254,373

Other income

2,338,093

1,788,176

253,100

Total other income

7,972,503

6,214,969

879,672

Loss before taxes and loss from equity in affiliates

(59,028,032)

(19,840,008)

(2,808,171)

Income tax expense

(22,810,960)

(11,317,882)

(1,942)

Loss from equity in affiliates

(5,122,363)

(4,495,218)

(636,257)

Net loss

(86,961,355)

(35,653,108)

(5,046,370)

Net loss attributable to non-controlling interests

324,176

5,268,069

745,647

Net loss attributable to ordinary shareholders

(86,637,179)

(30,385,039)

(4,300,723)

Net loss per ADS:

Basic

(2.58)

(0.91)

(0.13)

Diluted

(2.58)

(0.91)

(0.13)

Weighted average number of ADSs used in computation:

Basic

33,973

33,564,331

33,331

Diluted

33,331

Jupai Holdings Limited

Unaudited Condensed Comprehensive Income Statements

(In RMB,except for USD data)

Three months ended

June 30,

2019

2020

2020

RMB

RMB

USD

Net loss

(63,874)

Other comprehensive loss,net of tax:

Change in cumulative foreign currency translation adjustment

4,773,399

(224,131)

(31,724)

Other comprehensive income (loss)

4,724)

Comprehensive loss

(58,551,673)

(11,301,322)

(1,599,598)

Less: Comprehensive loss attributable to non-controlling interests

(1,851,899)

(585,728)

(82,904)

Comprehensive loss attributable to ordinary shareholders

(56,699,774)

(10,715,594)

(1,694)

Jupai Holdings Limited

Unaudited Condensed Comprehensive Income Statements

(In RMB,except for USD data)

Six months ended

June 30,

2019

2020

2020

RMB

RMB

USD

Net loss

(86,370)

Other comprehensive loss,net of tax:

Change in cumulative foreign currency translation adjustment

274,663

3,526,632

499,162

Other comprehensive income

274,162

Comprehensive loss

(86,692)

(32,476)

(4,547,208)

Less: Comprehensive loss attributable to non-controlling interests

(321,568)

(5,305,872)

(750,998)

Comprehensive loss attributable to ordinary shareholders

(86,365,124)

(26,820,604)

(3,796,210)

Jupai Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB,except for ADS data and percentages)

Three months ended

June 30,

2019

2020

RMB

RMB

Net margin attributable to ordinary shareholders

-32.8%

-9.7%

Adjusted net margin attributable to ordinary shareholders(non-GAAP)

-31.5%

-9.4%

Net loss attributable to ordinary shareholders

(61,043)

Adjustment for share-based compensation (net of tax effect of nil for both three months

ended June 30,2019 and 2020)

2,417,224

347,229

Adjusted net loss attributable to ordinary shareholders (non-GAAP)

(58,627,599)

(10,144,814)

Net lossattributable to ordinary shareholders per ADS,diluted

(1.82)

(0.31)

Adjusted net loss attributable to ordinary shareholders per ADS,diluted (non-GAAP)

(1.74)

(0.30)

Weighted average number of ADSs used in computation:

Diluted

33,631

Jupai Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB,except for ADS data and percentages)

Six months ended

June 30,

2019

2020

RMB

RMB

Net margin attributable to ordinary shareholders

-18.6%

-14.8%

Adjusted net margin attributable to ordinary shareholders(non-GAAP)

-17.4%

-13.3%

Net loss attributable to ordinary shareholders

(86,039)

Adjustment for share-based compensation (net of tax effect of nil for both six months ended

June 30,2019 and 2020)

4,785,264

3,048,042

Adjustment for amortization of intangible assets related to acquisition (net of tax effect of

RMB196,316 and nil for six months ended June 30,2019 and 2020,respectively)

588,954

-

Adjusted net loss attributable to ordinary shareholders (non-GAAP)

(81,262,961)

(27,336,997)

Net lossattributable to ordinary shareholders per ADS,diluted

(2.58)

(0.91)

Adjusted net loss attributable to ordinary shareholders per ADS,diluted (non-GAAP)

(2.42)

(0.81)

Weighted average number of ADSs used in computation:

Diluted

33,331

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