Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document and Entity Information | |
Entity Registrant Name | Jupai Holdings Ltd |
Entity Central Index Key | 1,616,291 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2016 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 193,720,706 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 161,769,575 | ¥ 1,123,166,156 | ¥ 795,497,163 |
Short-term investments (including short-term investments measured at fair value of RMB6,776,400 and RMB5,210,000, as of December 31, 2015 and 2016, respectively) | 3,630,995 | 25,210,000 | 72,446,602 |
Short-term entrusted investments | 1,868,839 | ||
Accounts receivable | 7,505,681 | 52,111,944 | 26,008,543 |
Other receivables | 11,384,390 | 79,041,821 | 33,539,256 |
Amounts due from related parties | 19,236,711 | 133,560,483 | 11,923,607 |
Deferred tax assets- current | 8,035,629 | 55,791,373 | 46,020,741 |
Other current assets | 1,807,747 | 12,551,186 | 6,659,354 |
Total current assets | 213,370,728 | 1,481,432,963 | 993,964,105 |
Long-term investments | 44,859,168 | ||
Investments at cost method | 10,146,911 | 70,450,000 | 60,450,000 |
Intangible assets, net | 11,964,935 | 83,072,545 | 54,754,172 |
Goodwill | 40,004,719 | 277,752,765 | 259,714,506 |
Prepayment for acquisition | 11,170,964 | 77,560,000 | 94,888,600 |
Investment in affiliates | 12,362,155 | 85,830,444 | 34,732,868 |
Property and equipment, net | 5,357,887 | 37,199,812 | 16,064,933 |
Long-term prepayment | 901,793 | 6,261,152 | 1,900,385 |
Deferred tax assets- non-current | 1,223,497 | 8,494,738 | 8,073,577 |
Total Assets | 306,503,589 | 2,128,054,419 | 1,569,402,314 |
Current liabilities: | |||
Accrued payroll and welfare expenses (including accrued payroll and welfare expense of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB28,071,443 and RMB13,202,322 as of December 31, 2015 and 2016, respectively) | 14,671,469 | 101,864,007 | 80,806,138 |
Income tax payable (including income tax payable of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB61,723,954 and RMB 88,720,024 as of December 31, 2015 and 2016, respectively) | 19,895,119 | 138,131,812 | 103,337,008 |
Other tax payable (including other tax payable of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB19,108,658 and RMB 30,650,996 as of December 31, 2015 and 2016, respectively) | 8,381,000 | 58,189,283 | 39,220,006 |
Dividend payable (including dividend payable of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB7,499,998 and RMB10,160,503 as of December 31, 2015 and 2016, respectively) | 1,463,417 | 10,160,503 | 7,499,998 |
Amounts due to related parties-current (including amounts due to related parties-current of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil and RMB 1,435,700 as of December 31,2015 and 2016, respectively) | 881,273 | 6,118,678 | |
Deferred revenue from related parties (including deferred revenue from related parties of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB78,206,048 and RMB117,167,110 as of December 31,2015 and 2016, respectively) | 17,520,416 | 121,644,250 | 83,752,232 |
Deferred revenues (including deferred revenues of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB49,773,048 and RMB36,098,862 as of December 31,2015 and 2016, respectively) | 5,247,328 | 36,432,195 | 58,157,948 |
Other current liabilities (including other current liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB2,106,219 and RMB1,737,863 as of December 31, 2015 and 2016, respectively) | 1,497,481 | 10,397,008 | 4,742,957 |
Total current liabilities | 69,557,503 | 482,937,736 | 377,516,287 |
Amounts due to related parties- non-current (including amounts due to related parties of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil as of December 31, 2015 and 2016, respectively) | 34,286,208 | ||
Deferred revenue - non-current from related parties (including deferred revenue from related parties of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB28,732,803 and RMB74,798,150 as of December 31, 2015 and 2016, respectively) | 10,861,820 | 75,413,617 | 30,708,429 |
Deferred revenue - non-current (including deferred revenue of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB3,561,506 and RMB5,583,565 as of December 31, 2015 and 2016, respectively) | 817,788 | 5,677,905 | 3,561,506 |
Non-current uncertain tax position liabilities (including uncertain tax position liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB5,372,253 and RMB5,938,816 as of December 31, 2015 and 2016, respectively) | 855,367 | 5,938,816 | 5,372,253 |
Deferred tax liabilities- non-current (including deferred tax liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil as of December 31, 2015 and 2016, respectively) | 1,413,740 | 9,815,595 | 13,688,541 |
Total Liabilities | 83,506,218 | 579,783,669 | 465,133,224 |
Shareholders' Equity: | |||
Ordinary Shares ($0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 179,586,759 and 193,720,706 shares issued and outstanding, as of December 31, 2015 and 2016, respectively) | 87,307 | 606,170 | 560,080 |
Additional paid-in capital | 152,658,220 | 1,059,906,023 | 896,815,686 |
Retained earnings | 52,271,658 | 362,922,123 | 155,338,255 |
Accumulated other comprehensive income | 11,115,016 | 77,171,557 | 34,354,063 |
Total Jupai shareholders' equity | 216,132,201 | 1,500,605,873 | 1,087,068,084 |
Non-controlling interests | 6,865,170 | 47,664,877 | 17,201,006 |
Total Equity | 222,997,371 | 1,548,270,750 | 1,104,269,090 |
Total Liabilities and Total Equity | $ 306,503,589 | ¥ 2,128,054,419 | ¥ 1,569,402,314 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2015CNY (¥)shares |
Accrued payroll and welfare expenses | ¥ 101,864,007 | ¥ 80,806,138 |
Income tax payable | 138,131,812 | 103,337,008 |
Other tax payable | 58,189,283 | 39,220,006 |
Dividend payable | 10,160,503 | 7,499,998 |
Amounts due to related parties-current | 6,118,678 | |
Deferred revenue - current from related parties | 121,644,250 | 83,752,232 |
Deferred revenues - current | 36,432,195 | 58,157,948 |
Other current liabilities | 10,397,008 | 4,742,957 |
Amounts due to related parties-non-current | 34,286,208 | |
Deferred revenue - non-current from related parties | 75,413,617 | 30,708,429 |
Deferred revenue - non-current | 5,677,905 | 3,561,506 |
Non-current uncertain tax position liabilities | 5,938,816 | 5,372,253 |
Deferred tax liabilities- non-current | ¥ 9,815,595 | ¥ 13,688,541 |
Shareholders' Equity: | ||
Ordinary shares, shares authorized | shares | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | shares | 193,720,706 | 179,586,759 |
Ordinary shares, shares outstanding | shares | 193,720,706 | 179,586,759 |
Short-term investments | ||
Investments, fair value | ¥ 5,210,000 | ¥ 6,776,400 |
Consolidated VIEs and VIEs' subsidiaries | ||
Accrued payroll and welfare expenses | 13,202,322 | 28,071,443 |
Income tax payable | 88,720,024 | 61,723,954 |
Other tax payable | 30,650,996 | 19,108,658 |
Dividend payable | 10,160,503 | 7,499,998 |
Amounts due to related parties-current | 1,435,700 | 0 |
Deferred revenue - current from related parties | 117,167,110 | 78,206,048 |
Deferred revenues - current | 36,098,862 | 49,773,048 |
Other current liabilities | 1,737,863 | 2,106,219 |
Amounts due to related parties-non-current | 0 | 0 |
Deferred revenue - non-current from related parties | 74,798,150 | 28,732,803 |
Deferred revenue - non-current | 5,583,565 | 3,561,506 |
Non-current uncertain tax position liabilities | 5,938,816 | 5,372,253 |
Deferred tax liabilities- non-current | ¥ 0 | ¥ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations | 12 Months Ended | |||
Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | |
Revenues | ||||
Third party revenues | $ 59,814,987 | ¥ 415,295,453 | ¥ 266,182,435 | ¥ 204,497,122 |
Related party revenues | 103,144,272 | 716,130,680 | 336,254,013 | 34,558,013 |
Total revenues | 162,959,259 | 1,131,426,133 | 602,436,448 | 239,055,135 |
Business taxes and related surcharges | (535,171) | (3,715,689) | (7,427,171) | (1,378,386) |
Net revenues | 162,424,088 | 1,127,710,444 | 595,009,277 | 237,676,749 |
Operating cost and expenses: | ||||
Cost of revenues | (68,707,318) | (477,034,912) | (235,943,955) | (65,094,587) |
Selling expenses | (34,177,946) | (237,297,482) | (87,091,525) | (35,233,118) |
General and administrative expenses | (22,462,750) | (155,958,876) | (91,777,836) | (42,813,000) |
Other operating income - government subsidy | 5,384,680 | 37,385,834 | 23,684,945 | 14,438,658 |
Total operating cost and expenses | (119,963,334) | (832,905,436) | (391,128,371) | (128,702,047) |
Income from operations | 42,460,754 | 294,805,008 | 203,880,906 | 108,974,702 |
Gain from deconsolidation of subsidiaries | 623,560 | |||
Interest income | 534,771 | 3,712,918 | 2,794,977 | 1,143,937 |
Investment income | 1,817,642 | 12,619,887 | 19,076,015 | 12,544,293 |
Gain from disposal of investment in affiliates | 2,330,001 | |||
Interest expense | (91,382) | |||
Realized exchange gain (loss) | (2,818) | (19,568) | 2,095,199 | |
Total other income | 2,349,595 | 16,313,237 | 26,296,192 | 14,220,408 |
Income before taxes and gain from equity in affiliates | 44,810,349 | 311,118,245 | 230,177,098 | 123,195,110 |
Income tax expense | (11,898,622) | (82,612,132) | (67,246,490) | (34,310,731) |
Gain from equity in affiliates | 221,708 | 1,539,316 | 4,333,847 | 476,516 |
Net income | 33,133,435 | 230,045,429 | 167,264,455 | 89,360,895 |
Net income attributable to non-controlling interests | (3,235,138) | (22,461,561) | (13,787,949) | (1,574,887) |
Net income attributable to Jupai shareholders | 29,898,297 | 207,583,868 | 153,476,506 | 87,786,008 |
Deemed dividend on Series B convertible redeemable preferred shares | (46,198,890) | |||
Net income attribute to ordinary shareholders | $ 29,898,297 | ¥ 207,583,868 | ¥ 153,476,506 | ¥ 41,587,118 |
Net income per share: | ||||
Basic (in dollars per share) | (per share) | $ 0.16 | ¥ 1.08 | ¥ 1.06 | ¥ 0.36 |
Diluted (in dollars per share) | (per share) | $ 0.15 | ¥ 1.03 | ¥ 1.01 | ¥ 0.36 |
Weighted average number of shares used in computation: | ||||
Basic (in shares) | shares | 192,674,014 | 192,674,014 | 114,124,300 | 83,683,960 |
Diluted (in shares) | shares | 200,765,917 | 200,765,917 | 119,598,947 | 114,445,361 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 33,133,435 | ¥ 230,045,429 | ¥ 167,264,455 | ¥ 89,360,895 |
Other comprehensive income, net of tax: | ||||
Change in fair value of available-for-sale investment, net of tax of RMB159,425, RMB312,320 and nil in 2014, 2015 and 2016, respectively. | 936,959 | 478,275 | ||
Disposal of available-for-sale investment, net of tax of RMB145,639, RMB326,553 and nil in 2014, 2015 and 2016, respectively. | (979,665) | (436,911) | ||
Change in cumulative foreign currency translation adjustment | 6,341,192 | 44,026,895 | 34,375,809 | 99,213 |
Other comprehensive income | 6,341,192 | 44,026,895 | 34,333,103 | 140,577 |
Comprehensive income | 39,474,627 | 274,072,324 | 201,597,558 | 89,501,472 |
Less: comprehensive income attributable to non-controlling interest | 3,409,328 | 23,670,962 | 13,847,117 | 1,574,887 |
Comprehensive income attributable to Jupai shareholders | 36,065,299 | 250,401,362 | 187,750,441 | 87,926,585 |
Deemed dividend on Series B convertible redeemable preferred shares | (46,198,890) | |||
Comprehensive income attributable to ordinary shareholders | $ 36,065,299 | ¥ 250,401,362 | ¥ 187,750,441 | ¥ 41,727,695 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Income | |||
Change in fair value of available-for-sale investment, tax | ¥ 0 | ¥ 312,320 | ¥ 159,425 |
Disposal of available-for-sale investment, tax | ¥ 0 | ¥ 326,553 | ¥ 145,639 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity | Ordinary sharesPrivate placementCNY (¥)shares | Ordinary sharesCNY (¥)shares | Additional paid-in capitalPrivate placementCNY (¥) | Additional paid-in capitalCNY (¥) | Subscription receivablesCNY (¥) | Retained earningsCNY (¥) | Accumulated other comprehensive incomeCNY (¥) | Total Jupai shareholders' equityPrivate placementCNY (¥) | Total Jupai shareholders' equityCNY (¥) | Non-controlling interestsCNY (¥) | Private placementCNY (¥) | USD ($)shares | CNY (¥)shares |
Balance at Dec. 31, 2013 | ¥ 317,280 | ¥ 40,000,000 | ¥ (317,280) | ¥ 92,294,467 | ¥ (60,449) | ¥ 132,234,018 | ¥ 3,929,384 | ¥ 136,163,402 | |||||
Balance (in shares) at Dec. 31, 2013 | shares | 100,000,000 | ||||||||||||
Net income | 87,786,008 | 87,786,008 | 1,574,887 | 89,360,895 | |||||||||
Share-based compensation | 3,046,402 | 3,046,402 | ¥ 3,046,402 | ||||||||||
Option exercised (in shares) | shares | 0 | 0 | |||||||||||
Capital contribution by non-controlling interest shareholder | 1,450,000 | ¥ 1,450,000 | |||||||||||
Foreign currency translation adjustments | 99,213 | 99,213 | 99,213 | ||||||||||
Dividend distributed to non-controlling interest shareholder | (255,000) | (255,000) | |||||||||||
Redesignation of ordinary shares to Series B convertible redeemable preferred shares | ¥ (119,167) | (178,218,726) | (178,337,893) | (178,337,893) | |||||||||
Redesignation of ordinary shares to Series B convertible redeemable preferred shares (in shares) | shares | (38,755,020) | ||||||||||||
Change in fair value of available-for-sale investment, net of tax of $159,425 and $312,320 in 2014 and 2015, respectively | 478,275 | 478,275 | 478,275 | ||||||||||
Disposal of available for sale investment, net of tax of $145,639 and $326,553 in 2014 and 2015, respectively | (436,911) | (436,911) | (436,911) | ||||||||||
Deconsolidation of a subsidiary | (2,295,382) | (2,295,382) | |||||||||||
Receipt of subscription | ¥ 317,280 | 317,280 | 317,280 | ||||||||||
Balance at Dec. 31, 2014 | ¥ 198,113 | 43,046,402 | 1,861,749 | 80,128 | 45,186,392 | 4,403,889 | 49,590,281 | ||||||
Balance (in shares) at Dec. 31, 2014 | shares | 61,244,980 | ||||||||||||
Net income | 153,476,506 | 153,476,506 | 13,787,949 | 167,264,455 | |||||||||
Issuance of ordinary shares to public, net of issuance cost | ¥ 91,669 | 259,016,528 | 259,108,197 | 259,108,197 | |||||||||
Issuance of ordinary shares to public, net of issuance cost (in shares) | shares | 29,970,000 | ||||||||||||
Share-based compensation | 15,895,439 | 15,895,439 | ¥ 15,895,439 | ||||||||||
Option exercised (in shares) | shares | 0 | 0 | |||||||||||
Foreign currency translation adjustments | 34,316,641 | 34,316,641 | 59,168 | ¥ 34,375,809 | |||||||||
Dividend distributed to non-controlling interest shareholder | (1,050,000) | (1,050,000) | |||||||||||
Issuance of ordinary shares in connection with business acquisition | ¥ 99,350 | 344,768,507 | 344,867,857 | 344,867,857 | |||||||||
Issuance of ordinary shares in connection with business acquisition (in shares) | shares | 32,481,552 | ||||||||||||
Change in fair value of available-for-sale investment, net of tax of $159,425 and $312,320 in 2014 and 2015, respectively | 936,959 | 936,959 | 936,959 | ||||||||||
Disposal of available for sale investment, net of tax of $145,639 and $326,553 in 2014 and 2015, respectively | (979,665) | (979,665) | (979,665) | ||||||||||
Conversion of preferred share | ¥ 170,948 | 234,088,810 | 234,259,758 | 234,259,758 | |||||||||
Conversion of preferred share (in shares) | shares | 55,890,227 | ||||||||||||
Balance at Dec. 31, 2015 | ¥ 560,080 | 896,815,686 | 155,338,255 | 34,354,063 | 1,087,068,084 | 17,201,006 | 1,104,269,090 | ||||||
Balance (in shares) at Dec. 31, 2015 | shares | 179,586,759 | ||||||||||||
Net income | 207,583,868 | 207,583,868 | 22,461,561 | $ 33,133,435 | 230,045,429 | ||||||||
Private placement | ¥ 40,550 | ¥ 138,566,650 | ¥ 138,607,200 | ¥ 138,607,200 | |||||||||
Private placement (in shares) | shares | 12,471,000 | ||||||||||||
Share-based compensation | 21,423,694 | 21,423,694 | 21,423,694 | ||||||||||
Option exercised | ¥ 2,618 | 3,102,915 | 3,105,533 | ¥ 3,105,533 | |||||||||
Option exercised (in shares) | shares | 789,480 | 789,480 | 789,480 | ||||||||||
Restricted shares exercised | ¥ 2,922 | (2,922) | |||||||||||
Restricted shares exercised (in shares) | shares | 873,467 | ||||||||||||
Capital contribution by non-controlling interest shareholder | 6,979,904 | ¥ 6,979,904 | |||||||||||
Non-controlling interest from acquisitions | 9,973,508 | 9,973,508 | |||||||||||
Foreign currency translation adjustments | 42,817,494 | 42,817,494 | 1,209,401 | 44,026,895 | |||||||||
Dividend distributed to non-controlling interest shareholder | (10,160,503) | (10,160,503) | |||||||||||
Balance at Dec. 31, 2016 | ¥ 606,170 | ¥ 1,059,906,023 | ¥ 362,922,123 | ¥ 77,171,557 | ¥ 1,500,605,873 | ¥ 47,664,877 | $ 222,997,371 | ¥ 1,548,270,750 | |||||
Balance (in shares) at Dec. 31, 2016 | shares | 193,720,706 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Changes in Shareholders' Equity | |||
Change in fair value of available-for-sale investment, tax | ¥ 0 | ¥ 312,320 | ¥ 159,425 |
Disposal of available for sale investment, tax | ¥ 0 | ¥ 326,553 | ¥ 145,639 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | $ 33,133,435 | ¥ 230,045,429 | ¥ 167,264,455 | ¥ 89,360,895 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 4,274,779 | 29,679,790 | 13,019,795 | 2,300,676 |
Income from equity in affiliates | (221,708) | (1,539,316) | (4,333,847) | (476,516) |
Gain from disposal of investment in affiliates | (2,330,001) | |||
Investment loss (income) on investment securities | 28,548 | 198,208 | (18,499,384) | 2,300,114 |
Impairment loss for a held-to-maturity investment | 3,200,000 | 800,000 | ||
Gain from deconsolidation of subsidiaries | (623,560) | |||
Share-based compensation | 3,085,654 | 21,423,694 | 15,895,439 | 3,046,402 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (3,743,179) | (25,988,894) | (20,318,891) | (2,453,879) |
Other receivables | (8,341,523) | (57,915,196) | (22,209,033) | (1,245,511) |
Other current assets | 457,147 | 3,173,970 | (349,015) | (3,003,483) |
Short term investments - trading securities | 225,609 | 1,566,400 | (2,579,599) | 5,150,308 |
Amounts due from related party | (17,044,385) | (118,339,158) | 14,722,220 | (8,862,312) |
Accrued payroll and welfare expenses | 3,022,475 | 20,985,042 | 66,956,154 | 8,026,955 |
Income tax payable | 5,011,494 | 34,794,805 | 61,434,310 | 6,957,262 |
Other tax payable | 2,732,144 | 18,969,276 | 26,536,831 | 3,540,769 |
Deferred revenue | (2,824,334) | (19,609,354) | 38,370,035 | 16,656,584 |
Uncertain tax position | 81,602 | 566,563 | 566,562 | 566,562 |
Other current liabilities | (2,584,250) | (17,942,451) | (8,591,012) | 8,465,690 |
Deferred revenue from related parties | 11,960,349 | 83,040,705 | 73,905,722 | 30,844,866 |
Deferred taxes | (2,138,237) | (14,845,784) | (33,607,234) | (11,903,047) |
Net cash provided by operating activities | 27,115,620 | 188,263,729 | 369,053,507 | 149,448,775 |
Cash flows from investing activities: | ||||
Purchases of property and equipment and intangible assets | (7,580,883) | (52,634,072) | (12,350,964) | (7,859,825) |
Purchase of held-to-maturity investments | (144,030) | (1,000,000) | (249,100,000) | (95,510,840) |
Collection of held-to-maturity investments | 14,172,548 | 98,400,000 | 244,462,485 | 22,699,997 |
Purchase of investment at cost method | (1,440,300) | (10,000,000) | (48,950,000) | |
Purchase of entrusted investments | (13,432,035) | |||
Collection of entrusted investments | 259,254 | 1,800,000 | 20,770,157 | 17,550,000 |
Purchases of available-for-sale investments | (44,700,000) | (43,000,000) | ||
Proceeds from available-for-sale investments | 56,004,429 | 32,944,850 | ||
Payment for investment in affiliates | (7,030,048) | (48,809,623) | (6,190,000) | |
Proceeds from partial disposal of subsidiaries | 7,100,000 | 11,932 | ||
Proceeds from disposal of investment in affiliates | 936,195 | 6,500,000 | ||
Customer borrowing | (155,760,000) | |||
Collection of customer borrowing | 3,364,569 | 213,875,430 | ||
Acquisition of subsidiaries, net of cash acquired (payment) | (295,021) | (2,048,328) | 43,581,058 | |
Prepayment for long term investment | (628,081) | (4,360,767) | (600,385) | (1,300,000) |
(Payment) collection of advanced payment for acquisition | 2,495,838 | 17,328,600 | (94,888,600) | |
Cash balance of deconsolidated subsidiary | (806,278) | |||
Loan to non-controlling interests shareholder | (474,970) | (3,297,719) | ||
Net cash (used in)/provided by investing activities | 270,502 | 1,878,091 | (75,307,251) | (36,776,769) |
Cash flows from financing activities: | ||||
Capital contribution from non-controlling interest shareholder | 1,005,315 | 6,979,904 | 1,450,000 | |
Proceeds from issuance of convertible redeemable preferred shares | 47,880,833 | |||
Dividend paid to non-controlling interest holder | (1,050,000) | (255,500) | ||
Proceeds from IPO | 305,559,135 | |||
Payment of IPO expenses | (44,801,147) | (1,649,791) | ||
Proceeds from private placement | 16,476,985 | 114,399,705 | 34,286,208 | |
Payments of private placement cost | (1,451,637) | (10,078,713) | ||
Collection of subscription receivable | 304,845 | |||
Proceeds from option exercise | 447,290 | 3,105,533 | ||
Net cash provided by financing activities | 16,477,953 | 114,406,429 | 293,994,196 | 47,730,387 |
Effect of exchange rate changes | 3,330,077 | 23,120,744 | 14,657,999 | 118,497 |
Net increase in cash and cash equivalents | 47,194,152 | 327,668,993 | 602,398,451 | 160,520,890 |
Cash and cash equivalents-beginning of the year | 114,575,423 | 795,497,163 | 193,098,712 | 32,577,822 |
Cash and cash equivalents-end of the year | 161,769,575 | 1,123,166,156 | 795,497,163 | 193,098,712 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for income taxes | 9,001,375 | 62,496,548 | 38,263,646 | 36,521,051 |
Cash paid for interest expenses | 91,382 | |||
Non-cash investing and financing activities: | ||||
Partial disposal of a subsidiary included in other receivables | 171,993 | 1,194,149 | 1,120,000 | |
Change in fair value of available-for-sale investments | (55,051) | |||
Deferred tax effect on change in fair value of available-for-sale investment not yet sold | 13,786 | |||
Acquisition of Scepter through share settlement | (344,867,857) | |||
Conversion of Series A and B convertible redeemable preferred shares to ordinary shares | 234,259,757 | |||
Unpaid cash dividend | $ 1,463,417 | ¥ 10,160,503 | ¥ 7,499,998 | |
Series B convertible redeemable preferred shares | ||||
Non-cash investing and financing activities: | ||||
Series B convertible redeemable preferred shares issued by re-designation of ordinary shares | ¥ 178,337,893 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Principal Activities | |
Organization and Principal Activities | 1. Organization and Principal Activities Jupai Holdings Limited (the ‘‘Company’’), formerly Jupai Investment Group, was incorporated on August 13, 2012 in the Cayman Islands. The Company, through its subsidiaries and consolidated variable interest entity, Shanghai Jupai Investment Group Co., Ltd. (‘‘Shanghai Jupai’’ or ‘‘the VIE’’) and the VIE’s subsidiaries (collectively, the ‘‘Group’’), provides wealth management products to the high net worth individuals in the People’s Republic of China (‘‘PRC’’). The Group began offering services in 2010 through Shanghai Jupai, which was founded in the PRC on July 28, 2010 by Mr. Tianxiang Hu who holds more than 50% of voting interests since establishment. In July 2015, the Company completed its initial public offering (“IPO”) on NYSE and acquisition of E-House Investment and Rechon Capital Limited’s 100% equity interest in Scepter Pacific Limited (“Scepter”), a holding company incorporated in BVI. Scepter provides asset management services in China through a consolidated VIE, Shanghai E-Cheng Asset Management Co. Ltd.(“Shanghai E-Cheng”) in PRC (see Note 2). In January 2016, the Group issued to Julius Baer Investment Ltd. (“Julius Baer”) and SINA Hong Kong Limited (“SINA”) 9,591,000 and 2,880,000 ordinary shares, respectively, representing approximately 4.99% and 1.5% of the Group’s total outstanding share capital, respectively, at $1.83 per share, in a private placement. The aggregate transaction value of this private placement was approximately $22.9 million. The Company’s significant subsidiaries as of December 31, 2016 include the following: Date of Place of Percentage of Shanghai Juxiang Investment Management Consulting Co., Ltd. (“Shanghai Juxiang”) July16, 2013 PRC % Baoyi Investment Consulting (Shanghai) Co., Ltd (“Shanghai Baoyi”) July 16, 2015 PRC % Jupai HongKong Investment Limited(“Jupai Hong Kong”) August 21, 2012 Hong Kong % Shanghai Jupai’s significant subsidiaries as of December 31, 2016 include the following: Date of Incorporation/acquisition Place of Percentage of Juzhou Asset Management (Shanghai) Co., Ltd. (“Juzhou”) May17, 2013 PRC % Shanghai Jupeng Asset Management Co., Ltd. (“Jupeng”) June 8, 2015 PRC % Shanghai E-Cheng’s significant subsidiaries as of December 31, 2016 include the following: Date of Acquisition Place of Percentage of Shanghai Yidezhen Equity Investment Center (“Yidezhen”) July 16, 2015 PRC % |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Principal Accounting Policies | |
Summary of Principal Accounting Policies | 2. Summary of Principal Accounting Policies (a) Basis of Presentation The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. As of December 31, 2016, all transactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to: govern the financial and operating policies; appoint or remove the majority of the members of the board of directors; cast a majority of votes at the meeting of the board of directors. U.S. GAAP provides guidance on the identification of VIE and financial reporting for entities over which control is achieved through means other than voting interests. The Group evaluates each of its investments to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. As foreign-invested companies are restricted to engage in direct sale of mutual funds, asset management plans and market survey under the current PRC laws and regulations, the Company’s PRC subsidiary, Shanghai Juxiang as foreign-invested company, does not meet all such requirements and therefore is not permitted to engage in such business in China. Therefore, the Company decided to conduct such business in China through Shanghai Jupai and its subsidiaries which are PRC domestic companies substantially beneficially owned by Mr. Tianxiang Hu, the Founder of the Company. Since the Company does not have any equity interests in Shanghai Jupai, in order to exercise effective control over its operations, the Company, through its wholly owned subsidiary Shanghai Juxiang, entered into a series of contractual arrangements, or Control Documents with Shanghai Jupai and its shareholders (“Jupai VIE”), pursuant to which the Company is entitled to receive effectively all economic benefits generated from Shanghai Jupai shareholders’ equity interests in it. Since the Company acquired Scepter in July 2015, Scepter, its subsidiaries, Shanghai E-Cheng and Shanghai E-Cheng’s subsidiaries were included in the consolidated financial statements. Scepter is engaged in asset management service business. Foreign-invested enterprises incorporated in the PRC are not expressively prohibited from providing asset management services in PRC. However, according to local business practice, as a general partner of a fund, Scepter must invest as a limited partner before the fund is established. Some investments of the fund managed by the Scepter are in the foreign-invested enterprise prohibited, or not encouraged industries, which requires all investors not to be foreign-invested enterprises. Therefore Scepter provides asset management services through its VIE entities. To provide Scepter effective control over and the ability to receive substantially all of the economic benefits of its VIE and its subsidiaries, Scepter’s wholly owned subsidiary Shanghai Baoyi, entered into a series of contractual arrangements with Shanghai E-Cheng, the “VIE” and its respective shareholders, respectively. (Hereafter, the VIE structure under Scepter is called “Scepter VIE”.) The agreements of Jupai VIE and Scepter VIE that provide the Company effective control over the VIE include: (i) Voting Rights Proxy Agreement (1) Jupai VIE: Each shareholder of Shanghai Jupai has executed a power of attorney to grant Shanghai Juxiang the power of attorney to act on his or her behalf on all matters pertaining to Shanghai Jupai and to exercise all of his or her rights as a shareholder of the Shanghai Jupai, including but not limited to convene, attend and vote at shareholders’ meetings, designate and appoint directors and senior management members. The proxy agreement will remain in effect unless Shanghai Juxiang terminates the agreement by giving a 30-day prior written notice or gives its consent to the termination by Shanghai Jupai. (2) Scepter VIE: Each of the shareholders of Shanghai E-Cheng irrevocably granted any person designated by Shanghai Baoyi the power to exercise all voting rights to which he will be entitled to as shareholder of Shanghai E-Cheng at that time, including the right to declare dividends, appoint and elect board members and senior management members and other voting rights. Each shareholder voting right proxy agreement has a term of twenty years, unless it is early terminated by all parties in writing or pursuant to provision of this agreement. The term of the agreement will be automatically extended for one year upon the expiration, if Shanghai Baoyi gives the other Parties written notice requiring the extension thereof and the same mechanism will apply subsequently upon the expiration of each extended term. (ii) Call Option Agreement (1) Jupai VIE: The shareholders of Shanghai Jupai granted Shanghai Juxiang or its designated representative(s) an irrevocable and exclusive option to purchase their equity interests or assets in Shanghai Jupai when and to the extent permitted by PRC law. Shanghai Juxiang or its designated representative(s) has sole discretion as to when to exercise such options, either in part or in full. Without Shanghai Juxiang’s written consent, the shareholders of Shanghai Jupai shall not transfer, donate, pledge, or otherwise dispose any equity interests of Shanghai Jupai in any way. The acquisition price for the shares or assets will be the minimum amount of consideration permitted under the PRC law at the time when the option is exercised. The agreement can be early terminated by Shanghai Juxiang, but not by Shanghai Jupai or its shareholders. (2) Scepter VIE: Each of shareholders of Shanghai E-Cheng has entered into an Exclusive Call Option Agreement with Baoyi. Pursuant to these agreements, each of the shareholders of Shanghai E-Cheng has granted an irrevocable and unconditional option to Shanghai Baoyi or its designees to acquire all or part of such shareholder’s equity interests in Shanghai E-Cheng at its sole discretion, to the extent as permitted by PRC laws and regulations then in effect. The consideration for such acquisition of all equity interests in Shanghai E-Cheng will be equal to the registered capital of Shanghai E-Cheng, and if PRC law requires the consideration to be greater than the registered capital, the consideration will be the minimum amount as permitted by PRC law. In addition, Shanghai E-Cheng irrevocably and unconditionally granted Baoyi an exclusive option to purchase, to the extent permitted under the PRC law, all or part of the assets of Shanghai E-Cheng. The exercise price for purchasing the assets of Shanghai E-Cheng will be equal to its respective book values, and if PRC law requires the price to be greater than the book value, the price will be the minimum amount as permitted by PRC law. The call option may be exercised by Shanghai Baoyi or its designees. The agreements that transfer economic benefits to the Company include: (i) Consulting Services Agreement, Operating Agreement and Exclusive Support Agreement (1) Jupai VIE: Shanghai Jupai engages Shanghai Juxiang as its exclusive technical and operational consultant and under which Shanghai Juxiang agrees to assist in arranging the financial support necessary to conduct Shanghai Jupai’s operational activities. Shanghai Jupai shall not seek or accept similar services from other providers without the prior written approval of Shanghai Juxiang. The agreements will be effective as long as Shanghai Jupai exists. Shanghai Juxiang may terminate this agreement at any time by giving a prior written notice to Shanghai Jupai. (2) Scepter VIE: Pursuant to an Exclusive Support Agreement between Shanghai Baoyi and Shanghai E-Cheng, Shanghai Baoyi provides Shanghai E-Cheng with a series of consultancy services on an exclusive basis and is entitled to receive related fees. The term of this Exclusive Support Agreement will expire upon dissolution of Shanghai E-Cheng. Unless expressly provided by this agreement, without prior written consent of Shanghai Baoyi, Shanghai E-Cheng may not engage any third party to provide the services offered by Shanghai Baoyi under this agreement. (ii) Equity Interest Pledge Agreement (1) Jupai VIE: The shareholders of Shanghai Jupai pledged all of their equity interests in Shanghai Jupai to Shanghai Juxiang as collateral to secure their obligations under the above agreement. If the shareholders of Shanghai Jupai or Shanghai Jupai breach their respective contractual obligations, Shanghai Juxiang, as pledgee, will be entitled to certain rights, including the right to dispose the pledged equity interests. Pursuant to the agreement, the shareholders of Shanghai Jupai shall not transfer, assign or otherwise create any new encumbrance on their respective equity interest in Shanghai Jupai without prior written consent of Shanghai Juxiang. This pledge will remain effective until all the guaranteed obligations are performed. The equity pledges of Shanghai Jupai have been registered with the relevant local branch of the State Administration for Industry and Commerce, or SAIC. (2) Scepter VIE: Each of the shareholders of Shanghai E-Cheng has also entered into an equity pledge agreement with Shanghai Baoyi. Pursuant to which these shareholders pledged their respective equity interest in Shanghai E-Cheng to guarantee the performance of the obligations of Shanghai E-Cheng. If Shanghai E-Cheng or its shareholders breach any of their respective obligations under any of these agreements, Shanghai Baoyi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Pursuant to the equity pledge agreement, each shareholder of Shanghai E-Cheng cannot transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in Shanghai E-Cheng without prior written consent of Shanghai Baoyi. The equity pledge right enjoyed by Shanghai Baoyi will expire when shareholders of Shanghai E-Cheng have fully performed their respective obligations under the above agreements. The equity pledges of Shanghai E-Cheng have been registered with the relevant local branch of SAIC. (iii) Loan Agreement for Scepter VIE. Under the Loan Agreement among the shareholders of Shanghai E-Cheng and Shanghai Baoyi, Shanghai Baoyi granted an interest-free loan to the shareholders of Shanghai E-Cheng, solely for their purchase of the equity interests of Shanghai E-Cheng. The loan is interest free and the term of the loan is (i) the expiration of 20 years from the date of the loan agreement, (ii) the expiration of Shanghai Baoyi’s operation term or (iii) the expiration of Shanghai E-Cheng’s operation term whichever is the earliest. Under the above agreements, the shareholders of Shanghai Jupai/Shanghai E-Cheng irrevocably granted Shanghai Juxiang/Shanghai Baoyi the power to exercise all voting rights to which they were entitled. In addition, Shanghai Juxiang/Shanghai Baoyi have the option to acquire all of the equity interests in Shanghai Jupai/Shanghai E-Cheng, to the extent permitted by the then-effective PRC laws and regulations, for nominal consideration. Finally, Shanghai Juxiang/Shanghai Baoyi is entitled to receive service fees for certain services to be provided to Shanghai Jupai/Shanghai E-Cheng. The Call Option Agreement and Voting Rights Proxy Agreement provide the Company effective control over the VIEs and their subsidiaries, while the Equity Interest Pledge Agreements secure the obligations of the shareholders of Shanghai Jupai and Shanghai E-Cheng under the relevant agreements. Because the Company, through Shanghai Juxiang and Shanghai Baoyi, has (i) the power to direct the activities of Shanghai Jupai and Shanghai E-Cheng that most significantly affect the entities’ economic performance and (ii) the right to receive substantially all of the benefits from Shanghai Jupai and Shanghai E-Cheng, the Company is deemed the primary beneficiary of Shanghai Jupai and Shanghai E-Cheng. Accordingly, the Company has consolidated the Shanghai Jupai and Shanghai E-Cheng’s financial results of operations, assets and liabilities, and cash flows in the Company’s consolidated financial statements. The Company believes that the contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: · Shanghai Jupai and Shanghai E-Cheng and their shareholders may have or develop interests that conflict with the Group’s interests, which may lead them to pursue opportunities in violation of the aforementioned contractual arrangements. · Shanghai Jupai and Shanghai E-Cheng and their shareholders could fail to obtain the proper operating licenses or fail to comply with other regulatory requirements. As a result, the PRC government could impose fines, new requirements or other penalties on the VIEs or the Group, mandate a change in ownership structure or operations for the VIEs or the Group, restrict the VIEs or the Group’s use of financing sources or otherwise restrict the VIEs or the Group’s ability to conduct business. · The aforementioned contractual agreements may be unenforceable or difficult to enforce. The equity interests under the Equity Interest Pledge Agreements have been registered by the shareholders of Shanghai Jupai and Shanghai E-Cheng with the relevant office of the administration of industry and commerce, however, the VIEs or the Group may fail to meet other requirements. Even if the contractual agreements are enforceable, they may be difficult to enforce given the uncertainties in the PRC legal system. · The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIEs have failed to comply with the legal obligations required to effectuate such contractual arrangements. As of December 31, 2016, the Group had variable interests in various investment funds and contractual funds that are VIEs but determined that it was not the primary beneficiary and, therefore, was not consolidating the VIEs. The maximum potential financial statement loss the Group could incur if the investment funds and contractual funds were to default on all of their obligations is (i) the loss of value of the interests in such investments that the Company holds, including equity investments recorded in investment in affiliates and investment at cost method in the consolidated balance sheet, and (ii) any one-time commissions, management fee and other service fees receivables recorded in accounts receivable. The following table summarizes the Company’s maximum exposure to loss associated with identified nonconsolidated VIEs in which it holds variable interests as of December 31, 2016 and 2015, respectively. As of December 31, 2015 2016 2016 RMB RMB USD Accounts receivable Investments Maximum exposure to loss in non-consolidated VIEs The following amounts and balances of Shanghai Jupai and Shanghai E-Cheng and their subsidiaries were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2015 2016 2016 RMB RMB USD Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts Trade and other receivables Amounts due from related parties Deferred tax assets Other current assets Investments at cost method Long-term prepayments — Advance prepayment for acquisition — — Investment in affiliates Property and equipment, net Deferred tax assets— non-current Total assets Accrued payroll and welfare expenses Income tax payable Other tax payable Dividend payable Deferred revenue — current from related parties Deferred revenue — current Amount due to related parties-current — Other current liabilities Non-current uncertain tax position liabilities Deferred revenue — non-current from related parties Deferred revenue — non-current Total liabilities Year ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Net revenues Third party Related party Operating cost and expenses Net income attributable to Jupai shareholders Cash flows generated from operating activities: Cash flows generated from/(used in) investing activities: ) Cash flows generated from/(used in) financing activities: ) The VIEs contributed an aggregate of 11%, 40% and 65% of the consolidated net revenues for the years ended December 31, 2014, 2015 and 2016, respectively and an aggregate of 12%, 32% and 63% of the consolidated net income attributable to Jupai shareholders for the years ended December 31, 2014, 2015 and 2016, respectively. As of December 31, 2015 and 2016, the VIEs accounted for an aggregate of 33% and 39%, respectively, of the consolidated total assets. There are no consolidated assets of the VIEs and their subsidiaries that are collateral for the obligations of the VIEs and their subsidiaries and can only be used to settle the obligations of the VIEs and their subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholder of the VIEs or entrustment loans to the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserve and their share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 17 for disclosure of restricted net assets. (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include assumptions used to determine the liability for uncertain tax positions, valuation allowance for deferred tax assets, fair value measurement of underlying investment portfolios of the funds that the Group invests, assumptions related to the consolidation of entities in which the Group holds variable interests, assumptions related to the valuation of share-based compensation, including estimation of related forfeiture rates, revenue multiple element allocation in terms of one-time, recurring and other service fees, and assumption used to determine the useful life of intangible assets acquired. (d) Concentration of Credit Risk The Group is subject to potential significant concentrations of credit risk consisting principally of cash and cash equivalents, accounts receivable, other receivables, amounts due from related party and investments. All of the Group’s cash and cash equivalents and a majority of investments are held with financial institutions that Group management believes to be of high credit quality. All revenues were generated within China and Hong Kong. There were no product providers or underlying corporate borrowers which accounted for 10% or more of total revenues for the years ended December 31, 2014, 2015, and 2016. (e) Entrusted investments In the past, the Group sometimes purchased the same financial product with its customers using its own funds but under the customers’ name, aiming to pursue higher return. The concerned customers are obliged to return the principle and gain to the Group at the maturity of the financial products. The Group bears both the product risk and the credit risk. The Group assessed the collectability of such entrusted investment based on factors surrounding the credit risk of specific customers like the length of time the investments are past due, previous loss history and the counterparty’s current ability to fulfill its obligation and did not provide any allowance for such investment due to the remote possibility of collection failure. The Group has terminated such practice of co-investment since August 2014. (f) Investments in Affiliates Affiliated companies are entities over which the Group does not control. The Group accounts for common-stock-equivalent equity investments in entities over which it has significant influence but does not own a majority voting interest or otherwise control using the equity method. The Group generally considers an ownership interest of 20% or higher to represent significant influence. Under the equity method, the Group’s share of the post-acquisition profits or losses of affiliated companies is recognized in the statements of operations and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. When the Group’s share of losses in an affiliated company equals or exceeds its carrying amount of the investment in the affiliated company, the Group does not recognize further losses, unless the Group has guaranteed the obligations of the affiliated company or is otherwise committed to provide further financial support for the affiliated company. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. The Group did not record any impairment loss for the years ended December 31, 2014, 2015 and 2016. The Group also considers it has significant influence over the funds that it serves as general partner or fund manager, and the Group’s ownership interest in these funds as limited partner is generally much lower than 5%. These funds are not consolidated by the Group based on the facts that the Group does not have control over the funds given substantive kick-out rights held by unrelated limited partners that allow them to remove the general partner without cause, and/or substantive participating rights that allow them to participate in certain financial and operating decisions of the limited partnership in the ordinary course of business. The equity method of accounting is accordingly used for investments by the Group in these funds. If an investee fund meets the definition of an Investment Company, it’s required to be reported at fair value. The Group records its equity pick-up based on its percentage ownership of the investee funds’ net income. For real estate projects, the group recorded its pick-up one quarter in arrears to enable it to have more time to collect and analyze the investments’ operating results. For other investee funds, the group recorded its pick-up based on 2016 net income. (g) Fair Value of Financial Instruments The Group records certain of its financial assets at fair value on a recurring basis. Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model- derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (h) Business combinations Business combinations are recorded using the purchase method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. The consideration of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Group to the sellers and equity instruments issued. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. Transaction costs directly attributable to the acquisition are expensed as incurred. (i) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. (j) Investments The Group invests in debt securities and accounts for the investments based on the nature of the products invested, and the Group’s intent and ability to hold the investments to maturity. The Group’s investments in debt securities include trust products, asset management plans and real estate funds that have a stated maturity and normally pay a prospective fixed rate of return. The Group classifies the investments in debt securities as held-to-maturity when it has both the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. Long-term investments are reclassified as short-term when their remaining contractual maturity date is less than one year. Investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value with changes in fair value recognized in earnings. Investments that do not meet the criteria of held-to-maturity or trading securities are classified as available-for-sale, and are reported at fair value with changes in fair value included in other comprehensive income. For equity investment over which the company does not have significant influence, the group records in investments at cost method. The Group reviews its investments, except for those classified as trading securities, for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Group’s intent and ability to hold the investment to determine whether an other-than-temporary impairment has occurred. The Group recognizes other-than-temporary impairment in earnings if it has the intent to sell the debt security or if it is more-likely-than-not that it will be required to sell the debt security before recovery of its amortized cost basis. Additionally, the Group evaluates expected cash flows to be received and determines if credit-related losses on debt securities exist, which are considered to be other-than-temporary, should be recognized in earnings. If the investment’s fair value is less than the cost of an investment and the Group determines the impairment to be other-than-temporary, the Group recognizes an impairment loss based on the fair value of the investment. (k) Non-controlling interests A non-controlling interest in a subsidiary of the Group represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Group. Non-controlling interests are presented as a separate component of equity in the consolidated balance sheet and earnings and other comprehensive income are attributed to controlling and non-controlling interests. (l) Property and Equipment, net Property and equipment is stated at cost less accumulated depreciation, and is depreciated using the straight-line method over the following estimated useful lives: Estimated Useful Lives in Years Leasehold improvements Shorter of the lease term or expected useful life Furniture, fixtures, and equipment 3—5 years Motor Vehicles 5 years Gains and losses from the disposal of property and equipment are included in income from operations. (m) Revenue Recognition The Group derives revenue primarily from one-time commissions and recurring service fees paid by product providers for whom the Group distributes wealth management products, and recurring management fee and carried interest paid by funds the Group manages. Starting from the second half of 2016, the Group also began to earn other service fees for consulting services provided to other companies. The Group recognizes revenues when there is persuasive evidence of an arrangement, service has been rendered, the sales price is fixed or determinable and collectability is reasonably assured. Revenues are recorded, net of sales related taxes and surcharges. Deferred revenues are recognized when payments are received in advance of the revenue being earned. The Group sometimes engages third party agents in promoting financial products and pays a channel fee accordingly, in which the Group recognizes revenue on a net basis by deducting the channel fee it pays to the third party agents. One-time Commissions The Group enters into one-time commission agreements with product providers or underlying corporate borrowers, which specifies the key terms and conditions of the arrangement. Such agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. Upon establishment of a wealth management product, the Group earns a one-time commission from product providers or underlying corporate borrowers, calculated as a percentage of the wealth management products purchased by its clients. The Group defines the “establishment of a wealth management product” for its revenue recognition purpose as the time when both of the following two criteria are met: (1) the Group’s client has entered into a purchase or subscription contract with the relevant product provider and, if required, the client has transferred a deposit to an escrow account designated by the product provider and (2) the product provider has issued a formal notice to confirm the establishment of a wealth management product. Revenue is recorded upon the establishment of the wealth management product, when the provision of service concludes and the fee becomes fixed and determinable, assuming all other revenue recognition criteria have been met, and there are no future obligations or contingencies. Recurring Service Fees Recurring service fee includes service fee and carried interest. It arises from on-going services provided to product providers after the distribution of wealth management product including investment relationship maintenance and coordination and product reports distribution. It is calcul |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Income per Share | |
Net Income per Share | 3. Net Income per Share The following table sets forth the computation of basic and diluted net income per share attributable to ordinary shareholders: 2014 2015 2016 2016 RMB RMB RMB USD Net income attributable to ordinary shareholders—basic Amounts allocated to convertible redeemable preferred shares for participating rights to dividends — — Net income attributable to ordinary shareholders—diluted Weighted average number of ordinary shares outstanding—basic Plus: convertible redeemable preferred shares — — — Plus: share options — Plus: restricted shares — — Weighted average number of ordinary shares outstanding—diluted Basic net income per share Diluted net income per share Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive: As of December 31, 2014 2015 2016 Share options Restricted shares — — Convertible redeemable preferred shares — — Total |
Accounts receivable and amounts
Accounts receivable and amounts due from related parties | 12 Months Ended |
Dec. 31, 2016 | |
Accounts receivable and amounts due from related parties | |
Accounts receivable and amounts due from related parties | 4. Accounts receivable and amounts due from related parties Accounts receivable of RMB26,008,543 and RMB52,111,944 at December 31, 2015 and 2016, respectively, consists of following: As of December 31, 2015 2016 2016 RMB RMB USD Within 1 year Total Amounts due from related parties of RMB11,923,607 and RMB133,560,483 at December 31, 2015 and 2016 respectively. Composition of amounts due from related parties is disclosure in Note 20. Group establishes an allowance policy for doubtful accounts and customer deposits primarily based upon factors surrounding the credit risk of specific customers, including creditworthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. The allowance for either accounts receivable or amounts due from related parties was nil for all periods presented. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments | |
Investments | 5. Investments The following table summarizes the Group’s investment balances: As of December 31, 2015 2016 2016 RMB RMB USD Short-term investments - Trading securities investments Trust products - Held-to-maturity investments Trust products Asset management plans — — Total short-term investments Long-term investments - Held-to-maturity investments — — Trust products — — Asset management plans — — Real estate funds — — Investments at cost method Total investments Trading securities investments consist of an investment in a trust product that could be redeemed at any time. The investment is recorded at fair value on a recurring basis. The fair value is from unadjusted quoted price in active market and therefore is classified as Level 1 measurement. The Group recorded investment income on these investments of RMB1,222,907 and RMB3,801,448 for the years ended December 31, 2014 and 2015, and investment loss of RMB1,566,400 for the year ended December 31, 2016. Held-to-maturity investments consist of investments in trust products that have stated maturity and normally pay a prospective fixed rate of return, and are carried at amortized cost. The Group recorded investment income on the following investments: For year ended December 31, 2014 2015 2016 RMB RMB RMB Trust products Asset management plans Real estate funds Total The Group recorded an impairment loss due to credit loss of RMB800,000, RMB3,200,000 and nil for years ended December 31, 2014, 2015 and 2016, respectively for held-to-maturity investments. The gross unrecognized gain was RMB915,933 and nil December 31, 2015 and 2016, respectively, representing the difference between the estimated fair value (Note 18) and carrying amount of the held-to-maturity investments. There were no transfers of assets among trading, available-for-sale and held-to-maturity classifications during the period presented. Investments at cost method consist of real estate fund of RMB10,000,000, private equity fund of RMB10,000,000 and private companies of RMB40,450,000 as of December 31, 2015. As of December 31, 2016, the investment in real estate fund was RMB10,000,000 and in private equity fund was RMB10,000,000 and in private companies was RMB40,450,000. In addition, the investment in convertible preferred shares of RMB 10,000,000 in a private company in 2016 was accounted for under the cost method given that the convertible preferred shares were not considered in-substance common stock due to the existence of certain terms such as redemption preference over ordinary shares. |
Investment in affiliates
Investment in affiliates | 12 Months Ended |
Dec. 31, 2016 | |
Investment in affiliates | |
Investment in affiliates | 6. Investment in affiliates The following table summarizes the Group’s balances of investment in affiliates: As of December 31 2015 2016 2016 RMB % RMB % USD % Private equity funds that the Company serves as general partner or fund manager Beijing Juyuan Information Technology Co., Ltd(“Juyuan”) — % % Shanghai Wuling Investment Center (“Wuling Center”) % % % Shanghai Changjiang Jupai Business Consulting Co., Ltd(“Changjiang Jupai”) — % % Shanghai Qihu Financial Information Co., Ltd(“Qihu”) — % % Shenzhen Guojinwenying Fund Management Co, Ltd(“Guojinwenying”) % % % Shanghai Guochen Equity Management Co., Ltd (“Guochen”) % % % Shanghai JupaiHehui Asset Management Co., Ltd. (‘‘Hehui’’) % % % Others Total investments The investments above are accounted for using equity method of accounting. Total investment in affiliates was RMB34,732,868 and RMB85,830,444 as of December 31, 2015 and 2016, respectively. In 2016, Shanghai Juxiang invested in private equity funds of funds that the Group serves as general partner or fund manager. Shanghai Juxiang and Scepter held no more than 4% equity interest in these private equity funds of funds as a general partner. The Group accounts for these investments using the equity method of accounting due to the fact that the Company can exercise significant influence on these investees in the capacity of general partner or fund manager. In 2016, the Group invested RMB 10,000,000 for 64% equity interest in Juyuan. Juyuan is not consolidated by the Group, so the Group accounted for the investment with equity method accounting. Its main operating business is information technology service. The Group obtained an investment in Wuling Center through the Scepter acquisition in July 2015. Shanghai Yidezhen Equity Investment Center (“Yidezhen”) held 1.1% equity interest in Wuling Center as a general partner as of December 31, 2016. Wuling Center is not consolidated by the Group as the Group does not control Wuling Center given that unrelated limited partners have substantive kick-out rights that allow them to remove the general partner without cause. Yidezhen acts as general partner in Wuling Center, which provides the Group with significant influence over the operating and financial policies of the investee, so the Group accounts for this investment by equity method. In 2016, the Group invested RMB 8,000,000 for 40% equity interest in Changjiang Jupai and accounted for the investment with equity method accounting. In 2016, the Group invested RMB 4,500,000 for 30% equity interest in Qihu and accounted for the investment with equity method accounting. Its main operating business is asset management and investment advisory service. In 2014, the Group invested RMB 4,500,000 for a 45% equity interest in Guojinwenying and accounted for the investment using the equity method of accounting. Its main operating business is fund management. Guochen was acquired as a result of Scepter acquisition in July 2015. In 2014, Shanghai Yidezhao Equity Investment Center (“Yidezhao”) formed Guochen with several unrelated third party investors and contributed RMB2,500,000 ($408,563) for a 8.3% equity interest in Guochen. Yidezhao can exercise significant influence through board representation and, as such, the Group accounted for the investment using equity method of accounting. Yidezhao used to be a wholly owned subsidiary of the Group in which the Group also served as the General Partner. In November 2016, the Group transferred existing business in Yidezhao to Yidezhen. Hehui used to be a consolidated subsidiary of the Group in which the Group owned 65% equity interest. In September 2014, the Group disposed of a 16% equity interest in Hehui to an unrelated third party, determined the Group no longer controlled the entity and as a result deconsolidated Hehui. The remaining 49% equity interest in Hehui was remeasured at fair value and has been subsequently accounted for as equity method investment. In addition to the above, the Group also held investments in several fund management companies, none of which is individually material. |
Acquisitions of Subsidiaries
Acquisitions of Subsidiaries | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions of Subsidiaries | |
Acquisitions of Subsidiaries | 7. Acquisitions of Subsidiaries (a)Acquisition in 2015 In July 2015, the Company acquired Scepter’s 100% equity interest from E-House Investment and Rechon Capital Limited upon closing of IPO, in exchange for 32,481,552 of the Company’s ordinary shares. The following table summarizes the purchase consideration to acquire Scepter: Amount Fair value of Company’s shares issued * Replacement of Scepter’s share options (Note 14) Consideration * The fair value of the 32,481,552 ordinary shares issued by the Company was based on the IPO offering price of the Company’s American depositary shares (“ADS”). The purchase price has been allocated as follows: Amount Amortization RMB Period Cash and cash equivalents Other current assets Long-term investments Other long-term assets Income tax payable ) Other current liabilities ) Intangible assets acquired: — Contract Backlog 3.5 year Goodwill * Deferred tax liabilities ) The acquisition was accounted for as a purchase transaction, and accordingly, the assets and liabilities of the acquired entity were recorded at their estimated fair values at the date of acquisition. The primary items that generated the goodwill were the acquired assembled workforce, which is not qualified as an intangible asset. The goodwill is not deductible for tax purposes. The transaction costs directly attributable to the acquisition were not material and were expensed as incurred. The amounts of revenue and earnings of Scepter since the acquisition date included in the consolidated income statement for the reporting period is as follows: Since the acquisition date 2015 RMB Revenue Net income attributable to Jupai (b)Acquisition in 2016 In Mar 2016, the Company acquired 34% equity in UP Capital Asset Management Ltd (hereinafter referred to as “UP Capital”) and Up Capital’s subsidiary, from an individual shareholder, with cash consideration of RMB5,081,739. Up capital and its subsidiary is engaged in business of asset management service. Both parties reached an agreement that the Company absorbs 70% of the benefits and costs of UP Capital and takes 2 seats out of 3 in the board of directors, which in combination lead to the Company’s control over UP Capital. As a result, the purchase was accounted for as a business acquisition and the results of Up Capital are included in the Group’s consolidated results from the acquisition date. The financial results of UP Capital are immaterial to the Group’s net assets and results of operations except that business license was recognized as intangible asset with indefinite life. The Group also recorded RMB 288,890 in goodwill related to the acquisition. In May 2016, the Company acquired 85% equity interest in Non-Linear Investment Management Ltd (hereinafter referred to as “Non-Linear”), from an individual shareholder with a cash consideration of RMB896,162. The financial results of Non-Linear are immaterial to the Group’s net assets and results of operations. The purchase was accounted for as a business acquisition and the results of Non-linear are included in the Group’s consolidated results from the acquisition date. No goodwill was recognized from the acquisition. RMB 1,075,154 of business license was recognized as intangible asset with indefinite life |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment, Net | |
Property and Equipment, Net | 8. Property and Equipment, Net Property and equipment, net consists of the following: As of December 31, 2015 2016 2016 RMB RMB USD Leasehold improvements Furniture, fixtures and equipment Motor Vehicles Total Accumulated depreciation ) ) ) Property and equipment, net Depreciation expense was RMB2,300,676, RMB5,007,143 and RMB10,924,678 for the years ended December 31, 2014, 2015 and 2016, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net | |
Intangible Assets, Net | 9. Intangible Assets, Net Intangible assets are comprised of the following: As of December 31, 2015 2016 2016 RMB RMB USD Customer contracts Software — Less: Accumulated amortization ) ) ) Intangible assets subject to amortization License with indefinite life — Foreign currency translation adjustment ) ) ) Intangible assets The licenses included in the intangible assets are assessed as indefinite life and are not subject to amortization. Amortization expense related to other intangible asset was nil, RMB8,012,652 and RMB18,755,112 for the years ended December 31, 2014, 2015 and 2016, respectively. The Group expects to record amortization expense of RMB20,213,308, RMB20,213,308 and RMB1,767,390 for the years ending December 31, 2017, 2018 and 2019, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill | |
Goodwill | 10. Goodwill The movement in carrying amount of goodwill is as follows: RMB Balance as of January 1, 2015 — Addition for acquisitions Foreign currency translation adjustments Balance as of January 1, 2016 Addition for acquisitions Foreign currency translation adjustments Balance as of December 31, 2016 The management has conducted step 0 assessment and determined it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, and therefore did not further perform the two-step impairment analysis. Management concluded that the goodwill was not impaired as of December 31, 2016. |
Prepayment for acquisition
Prepayment for acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Prepayment for acquisition | |
Prepayment for acquisition | 11. Prepayment for acquisition In March 2016, the Group entered into a binding agreement to acquire approximately 71% of equity interests in Shanghai Runju Financial Information Services Co. Ltd (“Runju”) from two of its existing shareholders, one of whom is a Shanghai Kushuo Information Technology Co., Ltd (a subsidiary of E-house and considered as related party to the group). Runju primarily operates an online platform which facilitates the transfer of debt and equity securities. The total consideration for the acquisition is approximately RMB 90.5 million ($13.0 million). The Group prepaid RMB 77.6 million ($11.2 million) in December 2015. The acquisition is not completed yet, as it’s still pending for assessment by management. |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2016 | |
Deferred revenue | |
Deferred revenue | 12. Deferred revenue Deferred revenues are recognized when payments are received in advance of revenue is earned. Certain contracts require that a portion of the payment be deferred until the end of the wealth management product’s life or other specified contingency. In such instances, the Group defers the contingent amount until the contingency has been resolved. If the contingency is contracted to be resolved within one year period, the deferred revenue is classified as short-term liabilities. Otherwise, it is classified as long-term liabilities. Deferred revenue from related parties was RMB114,460,661 and RMB197,057,867 as of December 31, 2015 and 2016 respectively. As of December 31, 2016, out of the total deferred revenue from related parties, RMB121,644,250 is expected to be recognized within twelve months and therefore, classified within current liabilities. The remaining balance of RMB75,413,617 is expected to be recognized as revenue after one year and therefore classified within non-current liabilities. Deferred revenue from third parties was RMB61,719,454 and RMB42,110,100 as of December 31, 2015 and 2016 respectively. As of December 31, 2016, RMB36,432,195 was expected to be earned within in a one year period and RMB5,677,905 was to be expected to be earned after one year. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2016 | |
Dividends | |
Dividends | 13. Dividends In June 2014, the Shanghai E-Cheng’s subsidiaries (Yidezeng, Yidezhen, and Yidezhao) declared a cash dividend on the accumulated undistributed earnings to the original shareholders of these entities. Scepter recorded a dividend payable of RMB31,500,000 for the net amount to be distributed to the shareholders, RMB24,000,002 of which was paid in 2014 and the residual was paid in January 2016. In September 2016, Juzhou declared a cash dividend on the accumulated undistributed earnings of RMB67,736,687 to all the shareholders of Juzhou and the Group recorded a dividend payable of RMB10,160,503 to be distributed to the non-controlling interest shareholder of Juzhou. Full amount of the dividend was paid in January 2017. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Compensation | |
Share-Based Compensation | 14. Share-Based Compensation In July 2014, the Group adopted the 2014 Share Incentive Plan (“the 2014 Plan”), which allows the Group to offer a variety of share-based incentive awards to employees, officers, and directors. The maximum number of shares that may be issued pursuant to all awards under the 2014 Plan shall initially be 17,570,281 ordinary shares, and will be increased automatically by 5% of the then total outstanding shares on an as-converted fully diluted basis on each of the third, sixth and ninth anniversaries of the effective date of the 2014 Plan. In December 2015, the Group amended the 2014 Plan to increase the number of shares reserved for future awards under the 2014 Plan by 9,367,739 ordinary shares to 26,938,020 ordinary shares. Share Options : On July 1, 2014 and April 2, 2015, the Group granted 12,056,000 and 1,061,600 options to purchase ordinary shares to certain employees at an exercise price of $0.48 and $1.00 per share, respectively. The options expire ten years from the date of grant and vest ratably at each grant date anniversary over a period of three years. Replacement of the Company’s option for Scepter’s option (“Options Replacement Program”). Effective upon the Company’s IPO and in connection with its acquisition of Scepter (“Replacement Date”), the Company exchanged 2,525,000 of its options (“Replacement Options”) under the 2014 Plan for the 505,000 of the options (“Replaced Options”) that had been previously granted to certain employees of Scepter and E-House under Scepter’s 2014 Share Incentive Plan (“Scepter Plan”), with other terms unchanged. The Company capitalized RMB13,702,194 as part of the cost of acquiring Scepter in regard to the Options Replacement Program, which the Company computed as the sum of (1) the Replacement Date fair value of the Replaced Options granted to the employees of E-House, and (2) the fair value of the Replaced Options granted to the employees of Scepter on the Replacement Date multiplied by the ratio of pre-acquisition services to the requisite service period of such Replaced Options, which is the same as the requisite service period of the Replacement Options. The amount of RMB3,675,035, which represented the difference between the total fair value of the Replacement Options granted to employees of Scepter on the Replacement Date and the amount capitalized as part of the cost of acquiring Scepter will be recognized over the remaining requisite service period of approximately 1.7 years. The Group used the binomial model to estimate the fair value of options using the following assumptions: July 1, 2014 April 2, 2015 July 16, 2015 Risk-free rate of return Contractual life of option 10 years 10 years 10 years Estimated volatility rate Expected dividend yield Fair value of underlying ordinary shares The Group estimated the risk free interest rate based on the yield to maturity of U.S. treasury bonds denominated in USD and adjusted for country risk premium of PRC at the option valuation date. The expected volatility at the date of grant date and option valuation date was estimated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable peer companies with a time horizon close to the expected expiry of the term. Prior to the Company’s IPO, the estimated fair value of the ordinary shares underlying the options as of the grant date was determined based on a contemporaneous valuation, which used management’s best estimate for projected cash flows as of the valuation date. Subsequent to July 16, 2015, the Group uses the current share price as the fair value of underlying ordinary shares. The Company recorded compensation expense of RMB3,046,402, RMB15,895,439 and RMB13,440,801 for the years ended December 31, 2014, 2015 and 2016. There was nil, nil and 789,480 options exercised during the years ended December 31, 2014, 2015 and 2016 respectively. A summary of option activity under the 2014 Plan during the year ended December 31, 2016. Number of Weighted Remaining Aggregate RMB RMB Outstanding, as of January 1, 2016 Exercised ) Forfeited ) Outstanding, as of December 31, 2016 Vested and expected to vest as of December 31, 2016 Exercisable as of December 31, 2016 As of December 31, 2016, there was RMB9,234,833 of total unrecognized compensation expense related to unvested share options granted under the 2014 Plan. That cost is expected to be recognized over a weighted-average period of 0.6 years. Non-vested restricted shares: On August 26, 2015, the Company granted 2,680,400 restricted shares to certain senior management and independent directors. The fair value of the restricted shares on grant date is $ 1.45. The restricted shares vest ratably at each grant date anniversary over a period of three years. A summary of restricted share activity under the 2014 Plan during the year ended December 31, 2016. Number of Weighted RMB Unvested, as of January 1, 2016 Granted Forfeited ) Vested ) Unvested, as of December 31, 2016 The total fair value of non-vested restricted shares vested in 2016 was RMB 21,065,942. The fair value of non-vested restricted shares was computed based on the fair value of the Group’s ordinary shares on the grant date. The Company recorded compensation expense of RMB7,982,893 for the year ended December 31, 2016. As of December 31, 2016, there was RMB16,106,594 of total unrecognized compensation expense related to unvested restricted shares granted under the 2014 Plan. That cost is expected to be recognized over a weighted-average period of 1.6 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | 15. Income Taxes Cayman Islands and British Virgin Islands (“BVI”) Under the current laws of the Cayman Islands and BVI, the Company is not subject to tax on its income or capital gains. In addition, the Cayman Islands and BVI do not impose withholding tax on dividend payments. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, our subsidiaries established in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. In addition, payments of dividends from our Hong Kong subsidiaries to us are not subject to any Hong Kong withholding tax. PRC Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25% on taxable income. The tax expense (benefit) comprises: Years Ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Current Tax Deferred Tax ) ) ) ) Total Reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes is as follows: Years Ended December 31, 2014 2015 2016 PRC income tax rate % % % Expenses not deductible for income tax purposes % % % Uncertain tax position impact % % % Different tax rate of subsidiary operation in other jurisdiction % % -0.81 % Effective income tax rate % % % The principal components of the deferred income tax asset and liabilities are as follows: As of December 31, 2015 2016 2016 RMB RMB USD Deferred tax assets: Deferred revenue Accrued expenses Discount of investment Tax loss carry forward Impairment for a held-to-maturity investment — — Exchange gain Gross deferred tax assets Valuation allowance — — — Net deferred tax assets Analysis as: Current Non-current Deferred tax liabilities: Amortization of intangible assets Unrealized investment income Total deferred tax liabilities Analysis as: Current Non-current The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more likely than not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the future periods provided for in the tax law. The amount of the deferred tax asset is considered realizable, however, could be reduced in the near term if the estimated of future taxable income during the carry-forward period are reduced. As of December 31, 2016, operating loss carried forward amounted to RMB36,204,005 for the PRC income tax purposes. The loss carrying forward will begin to expire in 2018. No valuation allowance was recorded as of December 31, 2016 as it is determined that it is more likely than not that the relevant deferred tax asset will be realized. Undistributed earnings of the Company’s PRC subsidiaries of approximately RMB704.4 million at December 31, 2016 are considered to be indefinitely reinvested and, accordingly, no provision for PRC dividend withholding tax has been provided thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Group would be subject to the then applicable PRC tax laws and regulations. The amounts of unrecognized deferred tax liabilities for these earnings are in the range of RMB35.2 million to RMB70.4 million, as the withholding tax rate of the profit distribution will be 5% or 10% depending upon whether the immediate offshore companies can enjoy the preferential withholding tax rate of 5%. Aggregate undistributed earnings of the Company’s VIEs and its VIEs’ subsidiaries located in the PRC that are available for distribution to the Company were approximately RMB370.3 million as of December 31, 2016. A deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amount in domestic subsidiaries. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Company has not recorded any such deferred tax liability attributable to the undistributed earnings of its financial interest in VIEs because it believes such excess earnings can be distributed in a manner that would not be subject to income tax. The Group has made its assessment of the level of tax authority for each tax position (including the potential application of interest and penalties) based on the technical merits, and has measured the unrecognized tax benefits associated with the tax positions. The Group accrued interest of RMB566,562, RMB566,562 and RMB566,563 related to the uncertain tax positions in 2014, 2015 and 2016, respectively. The Group does not anticipate any significant increases or decreases to its liability for unrecognized tax benefits within the next 12 months. According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is 10 years. There is no statute of limitations in the case of tax evasion. RMB Uncertain tax position—January 1, 2014 Gross increases—accrued interest in current period Exchange rate translation — Uncertain tax position—December 31, 2014 Gross increases—accrued interest in current period Exchange rate translation — Uncertain tax position—December 31, 2015 Gross increases—accrued interest in current period Exchange rate translation — Uncertain tax position—December 31, 2016 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans | |
Employee Benefit Plans | 16. Employee Benefit Plans The Group’s PRC subsidiaries, VIEs and the VIEs’ subsidiaries are required by law to contribute a certain percentages of applicable salaries for retirement benefits, medical insurance benefits, housing funds, unemployment and other statutory benefits. The PRC government is directly responsible for the payments of such benefits. The total contribution for such employee benefits were RMB11.0 million, RMB24.9 million and RMB61.2 million for the years ended December 31, 2014, 2015 and 2016 which is recorded in operating costs and expenses in the consolidated statements of operations in the period those contributions are due. The Group has no ongoing obligation to its employees subsequent to its contributions to such employee benefit plans. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Net Assets | |
Restricted Net Assets | 17. Restricted Net Assets Pursuant to the relevant laws and regulations in the PRC applicable to foreign-investment corporations and the Articles of Association of the Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries, the Group is required to maintain a statutory reserve (“PRC statutory reserve”): a general reserve fund, which is not available for dividend distribution. The Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries are required to allocate15% of their profit after taxation, as reported in their PRC statutory financial statements, to the general reserve fund until the balance reaches 50% of their registered capital. At their discretion, the PRC subsidiaries, VIEs and VIEs’ subsidiaries may allocate a portion of its after-tax profits based on PRC accounting standards to staff welfare and bonus funds. The general reserve fund may be used to make up prior year losses incurred and, with approval from the relevant government authority, to increase capital. PRC regulations currently permit payment of dividends only out of the Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries’ accumulated profits as determined in accordance with PRC accounting standards and regulations. The general reserve fund amounted to RMB42,595,219 and RMB59,269,800 as of December 31, 2015 and 2016, respectively. The Group has not allocated any of its after-tax profits to the staff welfare and bonus funds for any period presented. In addition, the share capital of the Company’s PRC subsidiaries, VIEs and VIEs’ subsidiaries of RMB327,146,223 and RMB344,127,537 as of December 31, 2015 and 2016, respectively, was considered restricted due to restrictions on the distribution of share capital. As a result of these PRC laws and regulations, the Company’s PRC subsidiaries, VIEs and VIEs’ subsidiaries are restricted in their ability to transfer a portion of their net assets, including general reserve and registered capital, either in the form of dividends, loans or advances. Such restricted portion amounted to RMB369,741,442 and RMB403,397,337 as of December 31, 2015 and 2016, respectively. The restricted net assets of the Company’s VIEs and VIEs’ subsidiaries amounted to RMB146,687,889 and RMB168,975,590 as of December 31, 2015 and 2016, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurement | |
Fair Value Measurement | 18. Fair Value Measurement As of December 31, 2015 and 2016, information about inputs into the fair value measurements of the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair Value Measurements at Reporting Date Using Description As of December Quoted Prices in Significant Other Significant Short-term investment: Trading securities investments — — Fair Value Measurements at Reporting Date Using Description As of December 31, Quoted Prices in Significant Other Significant Short-term investment: Trading securities investments — — Trading securities investments consist of an investment in a trust product that could be immediately redeemed. The investment is recorded at fair value on a recurring basis. The fair value is from an unadjusted quoted price in active market and therefore is classified as Level 1 measurement. The Group believes the fair value of its financial instruments that are not reported at fair value, principally cash and cash equivalents, accounts receivable, other receivables, amount due from related parties, short-term held-to-maturity securities, short-term entrusted investments, dividend payable and other current liabilities approximate their recorded values due to the short-term nature. The Group’s long-term investments consist of investment in long-term fixed income products and other long-term investments recorded at cost method . The fair value of long-term fixed income products was estimated using a discounted cash flow model based on contractual cash flows and a discount rate at the prevailing market yield on the measurement date for similar products, and is classified as a Level 2 fair value measurement. As of December 31, 2015, information about inputs into the fair value measurements of the Company’s fixed income products that are not reported at fair value on consolidated balance sheet is as follows: As of December 31, 2015 Fair Value Measurements at Reporting Date Quoted Prices in Significant Active Markets Significant Other Unobservable Carrying for Identical Observable Inputs Description Value Fair Value Assets (Level 1) Inputs (Level 2) (Level 3) Long-term investment-held-to-maturity Trust products — — Asset management plans — — Real estate funds — — The Group’s investments at cost method include investment in private equity funds and private companies, equity investment in residual tranche of real estate funds, and investment in convertible preferred shares of a private company. For private equity fund, private companies and real estate funds recorded at cost method, it is not practicable to estimate the fair value of the investment. Therefore, the Group did not disclose the fair value of the investment. In addition, the convertible preferred shares of the private company was made in 2016 and the fair value of the investment approximates to the cost as of December 31, 2016. There were no assets or liabilities measured at fair value on a non-recurring basis during the years ended December 31, 2014, 2015 and 2016, except that the Group recorded an impairment due to credit loss of RMB 800,000 and RMB 3,200,000 for a held-to-maturity investment in 2014 and 2015 upon the Group’s analysis on the collectability of this investment, and classified as a Level 2 fair value measure. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information | |
Segment Information | 19. Segment Information The Group uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the CEO and CO- Chairman of the Board, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group believes it operates in a sole segment, which is value-added wealth management services. Service Lines Details of revenue by type of service are as follows: Year Ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD One-time commissions Related party Third party Recurring management fee Related party Third party — — — Recurring service fees Related party — Third party Other service fees — — Related party — — Third party — — Total revenues All of the Group’s revenues are derived from the PRC and Hong Kong. The Group’s long lived assets are located substantially in the PRC. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions | |
Related Party Transactions | 20. Related Party Transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. The table below sets forth major related parties and their relationships with the Group: Company Name Relationship with the Group Hehui Affiliate of Juzhou During the years ended December 31, 2014, 2015 and 2016, significant related party transactions and balances were as follows: a. Revenue from Related Parties Years Ended December 31 2014 2015 2016 2016 RMB RMB RMB USD One-time commissions Hehui — Investees of affiliates of Juzhou, a subsidiary of a VIE of the Company Investees of Juzhou, a subsidiary of a VIE of the Company Investees of Jupeng, a subsidiary of a VIE of the Company — Investees of Mingdu, a subsidiary of a VIE of the Company — — — Investees of Yidezeng, a subsidiary of a VIE of the Company — Investees of Yidezhen, a subsidiary of a VIE of the Company — Investees of Yiju, a subsidiary of a VIE of the Company — — — Investees of Jupai Asset management Inc. , a subsidiary of the Company — — Investees of SINA, shareholder of the Company — — Total one-time commissions Recurring management fee Investees of Juzhou, a subsidiary of a VIE of the Company Investees of Jupeng, a subsidiary of a VIE of the Company — Investees of Mingdu, a subsidiary of a VIE of the Company — Investees of Yidezhen, a subsidiary of a VIE of the Company — Investees of Yidezeng, a subsidiary of a VIE of the Company — Investees of Yidexin, a subsidiary of a VIE of the Company — Investees of Yidezhao, a subsidiary of a VIE of the Company — — — Investees of Yiju, a subsidiary of a VIE of the Company — Total recurring management fee Recurring service fee Investees of affiliates of Juzhou, a subsidiary of a VIE of the Company — Investees of affiliates of Yidezeng, a subsidiary of a VIE of the Company — Investees of affiliates of Yidezhen, a subsidiary of a VIE of the Company — — Hehui — — Investees of SINA, shareholder of the Company — — Total recurring service fee — Other Service Fee Investees of Affiliates of Juzhou, a subsidiary of a VIE of the Company — — Investees of Jupeng, a subsidiary of a VIE of the Company — — Total other service fee Total b. Amounts due from Related Parties As of December 31, 2015 and 2016, amounts due from related parties were comprised of the following: As of December 31, 2015 2016 2016 RMB RMB USD Investees of Juzhou, a subsidiary of a VIE of the Company Investees of Affiliates of Juzhou, a subsidiary of a VIE of the Company Investees of Jupeng, a subsidiary of a VIE of the Company Investees of Yidexin, a subsidiary of a VIE of the Company — — Investees of Yidezhen, a subsidiary of a VIE of the Company Investees of Yidezeng, a subsidiary of a VIE of the Company Investees of Yidezhao, a subsidiary of a VIE of the Company — — Investees of Yubo, a subsidiary of a VIE of the Company — Investees of Yiju, a subsidiary of a VIE of the Company — Investees of Jupai Asset management Inc. , a subsidiary of the Company — Loan to non-controlling interests shareholder — Total amounts due from related parties Other than the loan to non-controlling interests shareholder, the remaining amounts represent the service fee receivable as of December 31, 2015 and 2016. c. Deferred Revenue from Related Parties As of December 31, 2016, deferred revenue from related parties was comprised of the following: As of December 31, 2015 2016 2016 RMB RMB USD Investee of Affiliates of Juzhou, a subsidiary of a VIE of the Company Investees of Juzhou, a subsidiary of a VIE of the Company Investees of Jupeng, a subsidiary of a VIE of the Company Investees of Yidezhen, a subsidiary of a VIE of the Company Investees of Yidezeng, a subsidiary of a VIE of the Company Hehui — Total amounts due from related parties The amounts represent recurring management fees and recurring service fees received from the investment fund managed or served by the Group in advance. No additional prepaid carried interest was received in 2015 and 2016. d. Amounts due to Related Party As of December 31, 2015 and 2016, amounts due to related party was as following: As of December 31, 2015 2016 2016 RMB RMB USD Sina Hong Kong Limited — — Investees of Yidezhen, a subsidiary of a VIE of the Company — Non-controlling interests shareholder — The amounts as of December 31, 2015 represent the advance payment received for private placement to SINA. The amounts as of December 31, 2016 mainly represent advances from non-controlling interest shareholder for the subsidiary’s operating expenses. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Commitments | |
Commitments | 21. Commitments Operating Leases The Group leases its facilities under non-cancelable operating leases expiring at various dates. Future minimum lease payments under non-cancelable operating lease agreements as of December 31, 2016 were as follows: Year Ended December 31 RMB 2017 2018 2019 2020 2021 and after — Total Rental expenses were RMB19,270,251, RMB31,927,239 and RMB65,303,048 during the years ended December 31, 2014, 2015 and 2016, respectively. Investment commitments The Group was obligated to provide capital injection up to RMB59,895,000 to the following equity method investees as of December 31, 2016: Year Ended December 31 RMB Guojinwenying Shanghai HuijuAsset Management Co., Ltd. Shanghai Jingzhou Asset Management Co., Ltd. Xiamen Zipai Asset Management Co., Ltd. Shanghai Jufu Assets Management Co., Ltd. Shanghai Zhoushi Asset Management Co., Ltd. Shanghai Juzhi Asset Management Co., Ltd. Beijing Donglinjusheng Investment Management Co., Ltd. Shanghai Qihu Financial Information Co., Ltd Hehui Shanghai Xinhao Investment Management Co., Ltd Shanghai Qianchang Investment Management Co., Ltd Shanghai Zhouzhi Investment Management Co., Ltd. Others Total |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events | |
Subsequent Events | 22. Subsequent Events On Feb 28, 2017, the Company announced that its board of directors has approved and declared a cash dividend of US$0.083 per ordinary share. Holders of Jupai’s ADSs, each representing six ordinary shares of Jupai, are accordingly entitled to the cash dividend of US$0.5 per ADS. The cash dividend were paid by Apr 3, 2017 to shareholders of record as of the close of business on March 20, 2017. The aggregate amount of cash dividends to be paid is approximately US$16 million, which will be funded by surplus cash on the Company’s balance sheet. The determination to make dividend distributions and the amount of such distributions in any particular year will be made at the discretion of the board of directors, who intends on paying dividends only to the extent cash is available in the offshore entities. |
Additional Financial Informatio
Additional Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2016 | |
Additional Financial Information of Parent Company | |
Additional Financial Information of Parent Company | Additional Financial Information of Parent Company — Financial Statements Schedule I Jupai Holdings Limited Financial Information of Parent Company Condensed Balance Sheets (In RMB) As of December 31, 2015 2016 2016 RMB RMB USD ASSETS Cash and cash equivalents Other receivables — Other current assets Total current assets Investment in subsidiaries and VIE Loan to subsidiaries Total Assets LIABILITY Other current liabilities Amount due to related parties-non current Total Liability Ordinary Shares ($0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 179,586,759 and 193,720,706 shares issued and outstanding, as of December 31, 2015 and 2016, respectively) Additional paid-in capital Retained earnings Accumulated other comprehensive income Total shareholders’ equity TOTAL LIABILITIES AND SHAREHOLERS’ EQUITY Additional Information —Financial Statement Schedule I Jupai Holdings Limited Financial Information of Parent Company Condensed Statements of Operations and Comprehensive Income (In RMB) Years ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Cost of revenues ) ) ) ) Selling expenses ) ) ) ) General and administrative expenses ) ) ) ) Other income — — Interest income — — Interest expense ) — — — Income before taxes and equity in affiliates ) ) ) ) Income from equity in subsidiaries and VIEs Net income Other comprehensive income Comprehensive income attributable to Jupai shareholders Deemed dividend on Series B convertible redeemable preferred shares ) — — — Comprehensive income attributable to ordinary shareholders 2014 Schedule I was restated to include the amounts attributable to the VIEs, which has resulted in an increase in Investment in VIEs and additional paid-in capital by RMB38,523,878. This change has no effect on the Group’s consolidated financial statements or other disclosures in Schedule I. Additional Information —Financial Statement Schedule I Jupai Holdings Limited Financial Information of Parent Company Condensed Statements of Cash Flows (In RMB) Years ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Cash flows from operating activities: Net income Adjustment to reconcile net income to net cash provided by operating activities: Share based compensation Income from equity in subsidiaries and VIEs ) ) ) ) Changes in operating assets and liabilities: Prepayment ) ) Other current assets — ) Other current liabilities ) Net cash used in operating activities ) ) ) ) Cash flows from investing activities: Loan to subsidiaries ) ) — — Investment in Up Capital — — ) ) Investment in Non-linear — — ) ) Net cash used in investing activities ) ) ) ) Cash flows from financing activities: proceeds from issuance of preferred shares — — — Proceeds from private placement — Exercise of options — — Proceeds from IPO — — — Payment of IPO cost ) ) — — Payment of private placement cost — — ) ) Subscription receivable — — — Net cash provided by financing activities Effect of exchange rate changes ) Net increase in cash and cash equivalents Cash and cash equivalents—beginning of year — Cash and cash equivalents—end of year Non-cash investing and financing activities: Series B convertible redeemable preferred shares issued by re-designation of ordinary shares — — — Acquisition of Scepter through share settlement — ) — — Conversion of Series A and B convertible redeemable preferred shares to ordinary shares — — — Additional Information —Financial Statement Schedule I Jupai Holdings Limited Notes to Schedule I 1. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries, VIEs and VIEs’ subsidiaries. For the parent company, the Company records its investments in subsidiaries, VIEs and VIEs’ subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments−Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries and VIEs” and the subsidiaries and VIEs’ profit as “Income from equity in subsidiaries and VIEs” on the Condensed Statements of Operations and Comprehensive Income. 2. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The footnote disclosure certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying Consolidated Financial Statements. 3. As of December 31, 2016, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company. |
Summary of Principal Accounti33
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Principal Accounting Policies | |
Basis of Presentation | (a) Basis of Presentation The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | (b) Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. As of December 31, 2016, all transactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to: govern the financial and operating policies; appoint or remove the majority of the members of the board of directors; cast a majority of votes at the meeting of the board of directors. U.S. GAAP provides guidance on the identification of VIE and financial reporting for entities over which control is achieved through means other than voting interests. The Group evaluates each of its investments to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. As foreign-invested companies are restricted to engage in direct sale of mutual funds, asset management plans and market survey under the current PRC laws and regulations, the Company’s PRC subsidiary, Shanghai Juxiang as foreign-invested company, does not meet all such requirements and therefore is not permitted to engage in such business in China. Therefore, the Company decided to conduct such business in China through Shanghai Jupai and its subsidiaries which are PRC domestic companies substantially beneficially owned by Mr. Tianxiang Hu, the Founder of the Company. Since the Company does not have any equity interests in Shanghai Jupai, in order to exercise effective control over its operations, the Company, through its wholly owned subsidiary Shanghai Juxiang, entered into a series of contractual arrangements, or Control Documents with Shanghai Jupai and its shareholders (“Jupai VIE”), pursuant to which the Company is entitled to receive effectively all economic benefits generated from Shanghai Jupai shareholders’ equity interests in it. Since the Company acquired Scepter in July 2015, Scepter, its subsidiaries, Shanghai E-Cheng and Shanghai E-Cheng’s subsidiaries were included in the consolidated financial statements. Scepter is engaged in asset management service business. Foreign-invested enterprises incorporated in the PRC are not expressively prohibited from providing asset management services in PRC. However, according to local business practice, as a general partner of a fund, Scepter must invest as a limited partner before the fund is established. Some investments of the fund managed by the Scepter are in the foreign-invested enterprise prohibited, or not encouraged industries, which requires all investors not to be foreign-invested enterprises. Therefore Scepter provides asset management services through its VIE entities. To provide Scepter effective control over and the ability to receive substantially all of the economic benefits of its VIE and its subsidiaries, Scepter’s wholly owned subsidiary Shanghai Baoyi, entered into a series of contractual arrangements with Shanghai E-Cheng, the “VIE” and its respective shareholders, respectively. (Hereafter, the VIE structure under Scepter is called “Scepter VIE”.) The agreements of Jupai VIE and Scepter VIE that provide the Company effective control over the VIE include: (i) Voting Rights Proxy Agreement (1) Jupai VIE: Each shareholder of Shanghai Jupai has executed a power of attorney to grant Shanghai Juxiang the power of attorney to act on his or her behalf on all matters pertaining to Shanghai Jupai and to exercise all of his or her rights as a shareholder of the Shanghai Jupai, including but not limited to convene, attend and vote at shareholders’ meetings, designate and appoint directors and senior management members. The proxy agreement will remain in effect unless Shanghai Juxiang terminates the agreement by giving a 30-day prior written notice or gives its consent to the termination by Shanghai Jupai. (2) Scepter VIE: Each of the shareholders of Shanghai E-Cheng irrevocably granted any person designated by Shanghai Baoyi the power to exercise all voting rights to which he will be entitled to as shareholder of Shanghai E-Cheng at that time, including the right to declare dividends, appoint and elect board members and senior management members and other voting rights. Each shareholder voting right proxy agreement has a term of twenty years, unless it is early terminated by all parties in writing or pursuant to provision of this agreement. The term of the agreement will be automatically extended for one year upon the expiration, if Shanghai Baoyi gives the other Parties written notice requiring the extension thereof and the same mechanism will apply subsequently upon the expiration of each extended term. (ii) Call Option Agreement (1) Jupai VIE: The shareholders of Shanghai Jupai granted Shanghai Juxiang or its designated representative(s) an irrevocable and exclusive option to purchase their equity interests or assets in Shanghai Jupai when and to the extent permitted by PRC law. Shanghai Juxiang or its designated representative(s) has sole discretion as to when to exercise such options, either in part or in full. Without Shanghai Juxiang’s written consent, the shareholders of Shanghai Jupai shall not transfer, donate, pledge, or otherwise dispose any equity interests of Shanghai Jupai in any way. The acquisition price for the shares or assets will be the minimum amount of consideration permitted under the PRC law at the time when the option is exercised. The agreement can be early terminated by Shanghai Juxiang, but not by Shanghai Jupai or its shareholders. (2) Scepter VIE: Each of shareholders of Shanghai E-Cheng has entered into an Exclusive Call Option Agreement with Baoyi. Pursuant to these agreements, each of the shareholders of Shanghai E-Cheng has granted an irrevocable and unconditional option to Shanghai Baoyi or its designees to acquire all or part of such shareholder’s equity interests in Shanghai E-Cheng at its sole discretion, to the extent as permitted by PRC laws and regulations then in effect. The consideration for such acquisition of all equity interests in Shanghai E-Cheng will be equal to the registered capital of Shanghai E-Cheng, and if PRC law requires the consideration to be greater than the registered capital, the consideration will be the minimum amount as permitted by PRC law. In addition, Shanghai E-Cheng irrevocably and unconditionally granted Baoyi an exclusive option to purchase, to the extent permitted under the PRC law, all or part of the assets of Shanghai E-Cheng. The exercise price for purchasing the assets of Shanghai E-Cheng will be equal to its respective book values, and if PRC law requires the price to be greater than the book value, the price will be the minimum amount as permitted by PRC law. The call option may be exercised by Shanghai Baoyi or its designees. The agreements that transfer economic benefits to the Company include: (i) Consulting Services Agreement, Operating Agreement and Exclusive Support Agreement (1) Jupai VIE: Shanghai Jupai engages Shanghai Juxiang as its exclusive technical and operational consultant and under which Shanghai Juxiang agrees to assist in arranging the financial support necessary to conduct Shanghai Jupai’s operational activities. Shanghai Jupai shall not seek or accept similar services from other providers without the prior written approval of Shanghai Juxiang. The agreements will be effective as long as Shanghai Jupai exists. Shanghai Juxiang may terminate this agreement at any time by giving a prior written notice to Shanghai Jupai. (2) Scepter VIE: Pursuant to an Exclusive Support Agreement between Shanghai Baoyi and Shanghai E-Cheng, Shanghai Baoyi provides Shanghai E-Cheng with a series of consultancy services on an exclusive basis and is entitled to receive related fees. The term of this Exclusive Support Agreement will expire upon dissolution of Shanghai E-Cheng. Unless expressly provided by this agreement, without prior written consent of Shanghai Baoyi, Shanghai E-Cheng may not engage any third party to provide the services offered by Shanghai Baoyi under this agreement. (ii) Equity Interest Pledge Agreement (1) Jupai VIE: The shareholders of Shanghai Jupai pledged all of their equity interests in Shanghai Jupai to Shanghai Juxiang as collateral to secure their obligations under the above agreement. If the shareholders of Shanghai Jupai or Shanghai Jupai breach their respective contractual obligations, Shanghai Juxiang, as pledgee, will be entitled to certain rights, including the right to dispose the pledged equity interests. Pursuant to the agreement, the shareholders of Shanghai Jupai shall not transfer, assign or otherwise create any new encumbrance on their respective equity interest in Shanghai Jupai without prior written consent of Shanghai Juxiang. This pledge will remain effective until all the guaranteed obligations are performed. The equity pledges of Shanghai Jupai have been registered with the relevant local branch of the State Administration for Industry and Commerce, or SAIC. (2) Scepter VIE: Each of the shareholders of Shanghai E-Cheng has also entered into an equity pledge agreement with Shanghai Baoyi. Pursuant to which these shareholders pledged their respective equity interest in Shanghai E-Cheng to guarantee the performance of the obligations of Shanghai E-Cheng. If Shanghai E-Cheng or its shareholders breach any of their respective obligations under any of these agreements, Shanghai Baoyi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Pursuant to the equity pledge agreement, each shareholder of Shanghai E-Cheng cannot transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in Shanghai E-Cheng without prior written consent of Shanghai Baoyi. The equity pledge right enjoyed by Shanghai Baoyi will expire when shareholders of Shanghai E-Cheng have fully performed their respective obligations under the above agreements. The equity pledges of Shanghai E-Cheng have been registered with the relevant local branch of SAIC. (iii) Loan Agreement for Scepter VIE. Under the Loan Agreement among the shareholders of Shanghai E-Cheng and Shanghai Baoyi, Shanghai Baoyi granted an interest-free loan to the shareholders of Shanghai E-Cheng, solely for their purchase of the equity interests of Shanghai E-Cheng. The loan is interest free and the term of the loan is (i) the expiration of 20 years from the date of the loan agreement, (ii) the expiration of Shanghai Baoyi’s operation term or (iii) the expiration of Shanghai E-Cheng’s operation term whichever is the earliest. Under the above agreements, the shareholders of Shanghai Jupai/Shanghai E-Cheng irrevocably granted Shanghai Juxiang/Shanghai Baoyi the power to exercise all voting rights to which they were entitled. In addition, Shanghai Juxiang/Shanghai Baoyi have the option to acquire all of the equity interests in Shanghai Jupai/Shanghai E-Cheng, to the extent permitted by the then-effective PRC laws and regulations, for nominal consideration. Finally, Shanghai Juxiang/Shanghai Baoyi is entitled to receive service fees for certain services to be provided to Shanghai Jupai/Shanghai E-Cheng. The Call Option Agreement and Voting Rights Proxy Agreement provide the Company effective control over the VIEs and their subsidiaries, while the Equity Interest Pledge Agreements secure the obligations of the shareholders of Shanghai Jupai and Shanghai E-Cheng under the relevant agreements. Because the Company, through Shanghai Juxiang and Shanghai Baoyi, has (i) the power to direct the activities of Shanghai Jupai and Shanghai E-Cheng that most significantly affect the entities’ economic performance and (ii) the right to receive substantially all of the benefits from Shanghai Jupai and Shanghai E-Cheng, the Company is deemed the primary beneficiary of Shanghai Jupai and Shanghai E-Cheng. Accordingly, the Company has consolidated the Shanghai Jupai and Shanghai E-Cheng’s financial results of operations, assets and liabilities, and cash flows in the Company’s consolidated financial statements. The Company believes that the contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: · Shanghai Jupai and Shanghai E-Cheng and their shareholders may have or develop interests that conflict with the Group’s interests, which may lead them to pursue opportunities in violation of the aforementioned contractual arrangements. · Shanghai Jupai and Shanghai E-Cheng and their shareholders could fail to obtain the proper operating licenses or fail to comply with other regulatory requirements. As a result, the PRC government could impose fines, new requirements or other penalties on the VIEs or the Group, mandate a change in ownership structure or operations for the VIEs or the Group, restrict the VIEs or the Group’s use of financing sources or otherwise restrict the VIEs or the Group’s ability to conduct business. · The aforementioned contractual agreements may be unenforceable or difficult to enforce. The equity interests under the Equity Interest Pledge Agreements have been registered by the shareholders of Shanghai Jupai and Shanghai E-Cheng with the relevant office of the administration of industry and commerce, however, the VIEs or the Group may fail to meet other requirements. Even if the contractual agreements are enforceable, they may be difficult to enforce given the uncertainties in the PRC legal system. · The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIEs have failed to comply with the legal obligations required to effectuate such contractual arrangements. As of December 31, 2016, the Group had variable interests in various investment funds and contractual funds that are VIEs but determined that it was not the primary beneficiary and, therefore, was not consolidating the VIEs. The maximum potential financial statement loss the Group could incur if the investment funds and contractual funds were to default on all of their obligations is (i) the loss of value of the interests in such investments that the Company holds, including equity investments recorded in investment in affiliates and investment at cost method in the consolidated balance sheet, and (ii) any one-time commissions, management fee and other service fees receivables recorded in accounts receivable. The following table summarizes the Company’s maximum exposure to loss associated with identified nonconsolidated VIEs in which it holds variable interests as of December 31, 2016 and 2015, respectively. As of December 31, 2015 2016 2016 RMB RMB USD Accounts receivable Investments Maximum exposure to loss in non-consolidated VIEs The following amounts and balances of Shanghai Jupai and Shanghai E-Cheng and their subsidiaries were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2015 2016 2016 RMB RMB USD Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts Trade and other receivables Amounts due from related parties Deferred tax assets Other current assets Investments at cost method Long-term prepayments — Advance prepayment for acquisition — — Investment in affiliates Property and equipment, net Deferred tax assets— non-current Total assets Accrued payroll and welfare expenses Income tax payable Other tax payable Dividend payable Deferred revenue — current from related parties Deferred revenue — current Amount due to related parties-current — Other current liabilities Non-current uncertain tax position liabilities Deferred revenue — non-current from related parties Deferred revenue — non-current Total liabilities Year ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Net revenues Third party Related party Operating cost and expenses Net income attributable to Jupai shareholders Cash flows generated from operating activities: Cash flows generated from/(used in) investing activities: ) Cash flows generated from/(used in) financing activities: ) The VIEs contributed an aggregate of 11%, 40% and 65% of the consolidated net revenues for the years ended December 31, 2014, 2015 and 2016, respectively and an aggregate of 12%, 32% and 63% of the consolidated net income attributable to Jupai shareholders for the years ended December 31, 2014, 2015 and 2016, respectively. As of December 31, 2015 and 2016, the VIEs accounted for an aggregate of 33% and 39%, respectively, of the consolidated total assets. There are no consolidated assets of the VIEs and their subsidiaries that are collateral for the obligations of the VIEs and their subsidiaries and can only be used to settle the obligations of the VIEs and their subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholder of the VIEs or entrustment loans to the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserve and their share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 17 for disclosure of restricted net assets. |
Use of Estimates | (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include assumptions used to determine the liability for uncertain tax positions, valuation allowance for deferred tax assets, fair value measurement of underlying investment portfolios of the funds that the Group invests, assumptions related to the consolidation of entities in which the Group holds variable interests, assumptions related to the valuation of share-based compensation, including estimation of related forfeiture rates, revenue multiple element allocation in terms of one-time, recurring and other service fees, and assumption used to determine the useful life of intangible assets acquired. |
Concentration of Credit Risk | (d) Concentration of Credit Risk The Group is subject to potential significant concentrations of credit risk consisting principally of cash and cash equivalents, accounts receivable, other receivables, amounts due from related party and investments. All of the Group’s cash and cash equivalents and a majority of investments are held with financial institutions that Group management believes to be of high credit quality. All revenues were generated within China and Hong Kong. There were no product providers or underlying corporate borrowers which accounted for 10% or more of total revenues for the years ended December 31, 2014, 2015, and 2016. |
Entrusted investments | (e) Entrusted investments In the past, the Group sometimes purchased the same financial product with its customers using its own funds but under the customers’ name, aiming to pursue higher return. The concerned customers are obliged to return the principle and gain to the Group at the maturity of the financial products. The Group bears both the product risk and the credit risk. The Group assessed the collectability of such entrusted investment based on factors surrounding the credit risk of specific customers like the length of time the investments are past due, previous loss history and the counterparty’s current ability to fulfill its obligation and did not provide any allowance for such investment due to the remote possibility of collection failure. The Group has terminated such practice of co-investment since August 2014. |
Investments in Affiliates | (f) Investments in Affiliates Affiliated companies are entities over which the Group does not control. The Group accounts for common-stock-equivalent equity investments in entities over which it has significant influence but does not own a majority voting interest or otherwise control using the equity method. The Group generally considers an ownership interest of 20% or higher to represent significant influence. Under the equity method, the Group’s share of the post-acquisition profits or losses of affiliated companies is recognized in the statements of operations and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. When the Group’s share of losses in an affiliated company equals or exceeds its carrying amount of the investment in the affiliated company, the Group does not recognize further losses, unless the Group has guaranteed the obligations of the affiliated company or is otherwise committed to provide further financial support for the affiliated company. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. The Group did not record any impairment loss for the years ended December 31, 2014, 2015 and 2016. The Group also considers it has significant influence over the funds that it serves as general partner or fund manager, and the Group’s ownership interest in these funds as limited partner is generally much lower than 5%. These funds are not consolidated by the Group based on the facts that the Group does not have control over the funds given substantive kick-out rights held by unrelated limited partners that allow them to remove the general partner without cause, and/or substantive participating rights that allow them to participate in certain financial and operating decisions of the limited partnership in the ordinary course of business. The equity method of accounting is accordingly used for investments by the Group in these funds. If an investee fund meets the definition of an Investment Company, it’s required to be reported at fair value. The Group records its equity pick-up based on its percentage ownership of the investee funds’ net income. For real estate projects, the group recorded its pick-up one quarter in arrears to enable it to have more time to collect and analyze the investments’ operating results. For other investee funds, the group recorded its pick-up based on 2016 net income. |
Fair Value of Financial Instruments | (g) Fair Value of Financial Instruments The Group records certain of its financial assets at fair value on a recurring basis. Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model- derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Business combinations | (h) Business combinations Business combinations are recorded using the purchase method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. The consideration of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Group to the sellers and equity instruments issued. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. Transaction costs directly attributable to the acquisition are expensed as incurred. |
Cash and Cash Equivalents | (i) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. |
Investments | (j) Investments The Group invests in debt securities and accounts for the investments based on the nature of the products invested, and the Group’s intent and ability to hold the investments to maturity. The Group’s investments in debt securities include trust products, asset management plans and real estate funds that have a stated maturity and normally pay a prospective fixed rate of return. The Group classifies the investments in debt securities as held-to-maturity when it has both the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. Long-term investments are reclassified as short-term when their remaining contractual maturity date is less than one year. Investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value with changes in fair value recognized in earnings. Investments that do not meet the criteria of held-to-maturity or trading securities are classified as available-for-sale, and are reported at fair value with changes in fair value included in other comprehensive income. For equity investment over which the company does not have significant influence, the group records in investments at cost method. The Group reviews its investments, except for those classified as trading securities, for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Group’s intent and ability to hold the investment to determine whether an other-than-temporary impairment has occurred. The Group recognizes other-than-temporary impairment in earnings if it has the intent to sell the debt security or if it is more-likely-than-not that it will be required to sell the debt security before recovery of its amortized cost basis. Additionally, the Group evaluates expected cash flows to be received and determines if credit-related losses on debt securities exist, which are considered to be other-than-temporary, should be recognized in earnings. If the investment’s fair value is less than the cost of an investment and the Group determines the impairment to be other-than-temporary, the Group recognizes an impairment loss based on the fair value of the investment. |
Non-controlling interests | (k) Non-controlling interests A non-controlling interest in a subsidiary of the Group represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Group. Non-controlling interests are presented as a separate component of equity in the consolidated balance sheet and earnings and other comprehensive income are attributed to controlling and non-controlling interests. |
Property and Equipment, net | (l) Property and Equipment, net Property and equipment is stated at cost less accumulated depreciation, and is depreciated using the straight-line method over the following estimated useful lives: Estimated Useful Lives in Years Leasehold improvements Shorter of the lease term or expected useful life Furniture, fixtures, and equipment 3—5 years Motor Vehicles 5 years Gains and losses from the disposal of property and equipment are included in income from operations. |
Revenue Recognition | (m) Revenue Recognition The Group derives revenue primarily from one-time commissions and recurring service fees paid by product providers for whom the Group distributes wealth management products, and recurring management fee and carried interest paid by funds the Group manages. Starting from the second half of 2016, the Group also began to earn other service fees for consulting services provided to other companies. The Group recognizes revenues when there is persuasive evidence of an arrangement, service has been rendered, the sales price is fixed or determinable and collectability is reasonably assured. Revenues are recorded, net of sales related taxes and surcharges. Deferred revenues are recognized when payments are received in advance of the revenue being earned. The Group sometimes engages third party agents in promoting financial products and pays a channel fee accordingly, in which the Group recognizes revenue on a net basis by deducting the channel fee it pays to the third party agents. One-time Commissions The Group enters into one-time commission agreements with product providers or underlying corporate borrowers, which specifies the key terms and conditions of the arrangement. Such agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. Upon establishment of a wealth management product, the Group earns a one-time commission from product providers or underlying corporate borrowers, calculated as a percentage of the wealth management products purchased by its clients. The Group defines the “establishment of a wealth management product” for its revenue recognition purpose as the time when both of the following two criteria are met: (1) the Group’s client has entered into a purchase or subscription contract with the relevant product provider and, if required, the client has transferred a deposit to an escrow account designated by the product provider and (2) the product provider has issued a formal notice to confirm the establishment of a wealth management product. Revenue is recorded upon the establishment of the wealth management product, when the provision of service concludes and the fee becomes fixed and determinable, assuming all other revenue recognition criteria have been met, and there are no future obligations or contingencies. Recurring Service Fees Recurring service fee includes service fee and carried interest. It arises from on-going services provided to product providers after the distribution of wealth management product including investment relationship maintenance and coordination and product reports distribution. It is calculated as a percentage of the total value of investments in the wealth management products purchased by the Group’s clients, calculated at the establishment date of the wealth management product. As the Group provides these services throughout the contract term, revenue is recognized over the contract term, assuming all other revenue recognition criteria have been met. For certain products, recurring service fees may also include a variable performance fee contingent upon the performance of the underlying investment, which is not recognized until the contingent criteria are met. Recurring service agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. Recurring Management Fees Recurring management fee arises from the fund management services provided to funds the Group manages, including management fee and carried interest. Management fees are computed as a percentage of the capital contribution in a fund and are recognized as earned over the specified contract period. Carried interest represents preferential allocations of profits that are a component of the Group’s general partnership interests and fund managing interests in the limited partnership and contractual funds and is not recognized until the end of the fund’s contract term when the carried interest is determined and distributed. Management fee received in advance of the specified contract period and in the limited circumstances carried interest received before the end of the fund’s contract term are recorded as deferred revenues. Other service fees Other service fee refers to revenue generated from consulting services provided to peers in asset management industry. Service fees are negotiated case by case, and are specified in agreements before services are provided. Revenue is recognized upon completion of the services when collectability is reasonably assured. Multiple Element Arrangements The Group enters into multiple element arrangements when a product provider or underlying corporate borrower engages it to provide both wealth management marketing and recurring services or other services. The Group also provides wealth management marketing, recurring services and other services to funds that it serves as general partner/co-general partner or fund manager. Both wealth management marketing and recurring services represent separate units of accounting. The Group allocates arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement each unit of accounting to all deliverables based on the relative selling price in accordance with the selling price hierarchy, which includes: (i) vendor-specific objective evidence (“VSOE”) if available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. VSOE. The Group determines VSOE based on its historical pricing and discounting practices for the specific service when sold separately. In determining VSOE, the Group requires that a substantial majority of the selling prices for these services fall within a reasonably narrow pricing range. TPE. When VSOE cannot be established for deliverables in multiple element arrangements, the Group applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Group’s products and services contain certain level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, the Group is unable to reliably determine what similar competitor services’ selling prices are on a stand-alone basis. As a result, the Group has not been able to establish selling price based on TPE. BESP. When it is unable to establish selling price using VSOE or TPE, the Group uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Group would transact a sale if the service were sold on a stand-alone basis. The Group determines BESP for deliverables by considering multiple factors including, but not limited to, prices it charged for similar products or funds, market conditions, specification of the services rendered and pricing practices. The Group has vendor specific objective evidence of fair value for most of its wealth management marketing services as it provides such services on a stand-alone basis. For certain wealth management marketing services related to private equity products, if vendor specific objective evidence is not available, the Group adopts BESP to establish selling prices. The Group has not sold its recurring services or other services on a stand-alone basis. However, the recurring management fee or recurring service fee the Group charges as general partner /co-general partner or fund manager/fund advisor is consistent with the fee at which the Group would transact if the recurring services were sold regularly on a stand-alone basis. Other service fees the Group charges for consulting services is consistent with that at which the Group would quote if the service is provided on a stand-alone basis. As such, the Group believes the fee it charges represents their best estimate of the selling price for its recurring services and other services. The Group allocates arrangement consideration based on fair value, which is equivalent to the fees charged for each of the respective units of accounting, as described above. Revenue for the respective units of accounting is also recognized in the same manner as described above. |
Business Tax and Related Surcharges | (n) Business Tax and Related Surcharges The Group is subject to value-added tax (“VAT”), business tax, education surtax, and urban maintenance and construction tax, on the services provided in the PRC. Business tax and related surcharges are primarily levied based on revenues at rates of 5% and are recorded as a reduction of revenues. With the rollout of the Value-added Tax (“VAT”) reform on May 1, 2016, business tax is no longer applicable to the Group, and the applicable VAT rate for the Group is 3% to 6%. |
Cost of Revenues | (o) Cost of Revenues Cost of revenue includes salaries and performance-based commissions of relationship managers and business development team, and expenses incurred in connection with product-specific client meetings and other events. |
Intangible assets, net | (p) Intangible assets, net Acquired intangible assets mainly consist of customer contracts and licenses from business combinations and are recorded at fair value on the acquisition date. Customer contracts are amortized using a straight-line method during the weighted average contract term. Licenses are determined to be infinite, and not subject to amortization. |
Impairment of long-lived assets | (q) Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. |
Goodwill | (r) Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. In accordance with Accounting Standards Codification (“ASC”) 350-20, a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment (“step 0”), that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a two-step quantitative impairment test is mandatory. The Company may also elect to proceed directly to the two step impairment test without considering qualitative factors. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. |
Income Taxes | (s) Income Taxes Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations. The Group accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Group recognizes net deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, it considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Group determines that its deferred tax assets are realizable in the future in excess of their net recorded amount, the Group would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Group records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Group recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The effective tax rate for the Group includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Group recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. |
Share-Based Compensation | (t) Share-Based Compensation The Group recognizes share-based compensation based on the grant date fair value of equity awards, with compensation expense recognized over the vesting period. Share-based compensation expense is classified in the consolidated statements of operations based upon the job function of the grantee. The Group accounts for a cancellation or settlement of an equity settled share-based payment award as an acceleration of vesting, and recognize immediately the amount that otherwise would have been recognized for services received over the remainder of the vesting period. The Group also estimates expected forfeitures and recognizes compensation cost only for those share-based awards expected to vest. Actual forfeitures may differ from those estimated by the Group which would affect the amount of share-based compensation to be recognized. |
Government Grants | (u) Government Grants Government subsidies include cash subsidies received by the Group’s entities in the PRC from local governments as incentives for registering and operating business in certain local districts and are typically granted based on the amount of value-added tax, business tax, and income tax payment generated by the Group in certain local districts. Such subsidies allow the Group full discretion in utilizing the funds and are used by the Group for general corporate purpose. The local governments have final discretion as to the amount of cash subsidies. Cash subsidies are included in other operating income and recognized when received and when all the conditions for their receipt have been satisfied. |
Net Income per Share | (v) Net Income per Share Basic net income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group has determined that its Series B convertible redeemable preferred shares issued in 2014 are participating securities as the convertible redeemable preferred shares participate in the undistributed earnings on the same basis as the ordinary shares for the periods applicable. Accordingly, the Group has used the two-class method of computing earnings per share. Under this method, net income attributable to the Jupai shareholders is allocated on a pro-rata basis to the ordinary and convertible redeemable preferred shares to the extent that each class may share in income for the period. Losses are not allocated to the participating securities. Diluted earnings per share are computed using the more dilutive of the two-class method or the if-converted method. Upon the IPO, the Series B convertible redeemable preferred shares were converted into ordinary shares in 2015 and accordingly, the two-class method was not applied in the 2016 net income per share calculation. Diluted net income per share is computed by giving effect to all potential dilutive shares, including convertible redeemable preferred shares. |
Operating Leases | (w) Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Certain of the Group’s facility leases provide for a free rent period. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease period. |
Foreign Currency Translation | (x) Foreign Currency Translation The functional currency of the Company, Jupai International, Scepter Holdings Limited, and Scepter Pacific Limited is the United States dollar (“U.S. dollar”). The functional currency of Jupai Hong Kong, UP Capital Asset Management Ltd., Non-Linear Investment Management Ltd., is the Hong Kong Dollar (“HKD”). The subsidiaries in the PRC and the VIEs determined their functional currency to be the Chinese Renminbi(“RMB”). The determination of the respective functional currency is based on the criteria of ASC 830, Foreign Currency Matters. Assets and liabilities of the Group’s overseas entities denominated in currencies other than RMB are translated into RMB at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the consolidated statements of comprehensive income. Effective July 1, 2016, the Company changed its reporting currency from US$ to RMB. The aligning of the reporting currency with the underlying operations better reflects the Company’s results of operations for each period, and reduces the impact that the increased volatility of the Renminbi to U.S. dollars exchange rate will have on the Company’s reported operating results. Prior to July 1, 2016, the Company reported its annual and quarterly consolidated balance sheets and consolidated statements of income and comprehensive income and shareholder’s equity and cash flows in US$. The related financial statements prior to July 1, 2016 have been recast to RMB as if the financial information originally had been presented in RMB since the earliest periods presented. The change in reporting currency resulted in cumulative foreign currency translation adjustment of RMB99,213, RMB34,375,809 and RMB44,026,895 for the year ended December 31, 2014, 2015 and 2016, respectively. Translations of amounts from RMB into US$ are solely for the convenience of the readers and were calculated at the rate of US$1.00 for RMB6.9430 on December 31, 2016, representing the certificated exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2016, or at any other rate. |
Comprehensive Income | (y) Comprehensive Income Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income included net income, foreign currency translation adjustments, fair value changes of available-for-sale investments, net of tax effect . |
Recently issued accounting pronouncements | (z) Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued, ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The accounting guidance also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 can be adopted using one of two retrospective application methods. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date”, which defers the effective date of ASU 2014-09 by one year, to fiscal years beginning after December 15, 2017, and interim periods therein. The Group currently expects to adopt ASU 2014-09 and related topics in its first quarter of 2018, and is evaluating which transition approach to use. Additionally, the FASB issued the following various updates affecting the guidance in ASU 2014-09. The effective dates and transition requirements are the same as those in ASC Topic 606 above. In March 2016, FASB issued an amendment to the standard, ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” Under the amendment, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (as an agent). In April 2016, FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, to clarify identifying performance obligations and the licensing implementation guidance, which retaining the related principles for those areas. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”. This update addresses narrow-scope improvements to the guidance on collectability, noncash consideration and completed contracts at transition. The update provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. Then, in December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The updates in ASU 2016-20 affect narrow aspects of the guidance issued in ASU 2014-09. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires deferred income tax liabilities and assets to be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. The guidance is effective for public entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption being permitted. The ASU will only have impact on the Group’s consolidated balance sheets classification upon adoption. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, which eliminates the requirement to retroactively adopt the equity method of accounting. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The ASU will not impact on the Group’s consolidated balance sheets classification upon adoption. In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public entities, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Early adoption will be permitted in any interim or annual period for which financial statements have not yet been issued or have not been made available for issuance. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). The update is intended to improve financial reporting in regards to how certain transactions are classified in the statement of cash flows. This update requires that debt extinguishment costs be classified as cash outflows for financing activities and provides additional classification guidance for the statement of cash flows. The update also requires that the classification of cash receipts and payments that have aspects of more than one class of cash flows to be determined by applying specific guidance under generally accepted accounting principles. The update also requires that each separately identifiable source or use within the cash receipts and payments be classified on the basis of their nature in financing, investing or operating activities. The update is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements. In October 2016, FASB issued ASU 2016-16, Income Taxes (Topic 740). Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. Under the new standard, an entity is to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new standard does not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The new standard is effective for annual periods beginning after December 15, 2017, including interim reporting periods within those annual periods. The ASU will have no impact other than the classification on the Group’s consolidated balance sheets upon adoption. In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. The update applies to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows. The update addresses diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows, and requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The update is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The updates should be applied using a retrospective transition method to each period presented. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The update affects all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The update is intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update provides a more robust framework to use in determining when a set of assets and activities is a business, and also provides more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. For public companies, the update is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The update simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The update also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. For public companies, the update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements. |
Organization and Principal Ac34
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Principal Activities | |
Schedule of the Company's subsidiaries | The Company’s significant subsidiaries as of December 31, 2016 include the following: Date of Place of Percentage of Shanghai Juxiang Investment Management Consulting Co., Ltd. (“Shanghai Juxiang”) July16, 2013 PRC % Baoyi Investment Consulting (Shanghai) Co., Ltd (“Shanghai Baoyi”) July 16, 2015 PRC % Jupai HongKong Investment Limited(“Jupai Hong Kong”) August 21, 2012 Hong Kong % Shanghai Jupai’s significant subsidiaries as of December 31, 2016 include the following: Date of Incorporation/acquisition Place of Percentage of Juzhou Asset Management (Shanghai) Co., Ltd. (“Juzhou”) May17, 2013 PRC % Shanghai Jupeng Asset Management Co., Ltd. (“Jupeng”) June 8, 2015 PRC % Shanghai E-Cheng’s significant subsidiaries as of December 31, 2016 include the following: Date of Acquisition Place of Percentage of Shanghai Yidezhen Equity Investment Center (“Yidezhen”) July 16, 2015 PRC % |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Principal Accounting Policies | |
Schedule of amounts of variable interest entity included in the Group's consolidated financial statements | As of December 31, 2015 2016 2016 RMB RMB USD Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts Trade and other receivables Amounts due from related parties Deferred tax assets Other current assets Investments at cost method Long-term prepayments — Advance prepayment for acquisition — — Investment in affiliates Property and equipment, net Deferred tax assets— non-current Total assets Accrued payroll and welfare expenses Income tax payable Other tax payable Dividend payable Deferred revenue — current from related parties Deferred revenue — current Amount due to related parties-current — Other current liabilities Non-current uncertain tax position liabilities Deferred revenue — non-current from related parties Deferred revenue — non-current Total liabilities Year ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Net revenues Third party Related party Operating cost and expenses Net income attributable to Jupai shareholders Cash flows generated from operating activities: Cash flows generated from/(used in) investing activities: ) Cash flows generated from/(used in) financing activities: ) |
Schedule of maximum exposure to loss associated with non-consolidated VIE | As of December 31, 2015 2016 2016 RMB RMB USD Accounts receivable Investments Maximum exposure to loss in non-consolidated VIEs |
Schedule of estimated useful lives of property and equipment | Estimated Useful Lives in Years Leasehold improvements Shorter of the lease term or expected useful life Furniture, fixtures, and equipment 3—5 years Motor Vehicles 5 years |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Income per Share | |
Schedule of computation of basic and diluted net income per share attributable to ordinary shareholders | 2014 2015 2016 2016 RMB RMB RMB USD Net income attributable to ordinary shareholders—basic Amounts allocated to convertible redeemable preferred shares for participating rights to dividends — — Net income attributable to ordinary shareholders—diluted Weighted average number of ordinary shares outstanding—basic Plus: convertible redeemable preferred shares — — — Plus: share options — Plus: restricted shares — — Weighted average number of ordinary shares outstanding—diluted Basic net income per share Diluted net income per share |
Schedule of antidilutive securities excluded from computation of earnings per share | As of December 31, 2014 2015 2016 Share options Restricted shares — — Convertible redeemable preferred shares — — Total |
Accounts receivable and amoun37
Accounts receivable and amounts due from related parties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts receivable and amounts due from related parties | |
Schedule of accounts receivable | As of December 31, 2015 2016 2016 RMB RMB USD Within 1 year Total |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments | |
Schedule of investment balances | As of December 31, 2015 2016 2016 RMB RMB USD Short-term investments - Trading securities investments Trust products - Held-to-maturity investments Trust products Asset management plans — — Total short-term investments Long-term investments - Held-to-maturity investments — — Trust products — — Asset management plans — — Real estate funds — — Investments at cost method Total investments |
Schedule of income on investments | For year ended December 31, 2014 2015 2016 RMB RMB RMB Trust products Asset management plans Real estate funds Total |
Investment in affiliates (Table
Investment in affiliates (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment in affiliates | |
Schedule of balances of investment in affiliates | As of December 31 2015 2016 2016 RMB % RMB % USD % Private equity funds that the Company serves as general partner or fund manager Beijing Juyuan Information Technology Co., Ltd(“Juyuan”) — % % Shanghai Wuling Investment Center (“Wuling Center”) % % % Shanghai Changjiang Jupai Business Consulting Co., Ltd(“Changjiang Jupai”) — % % Shanghai Qihu Financial Information Co., Ltd(“Qihu”) — % % Shenzhen Guojinwenying Fund Management Co, Ltd(“Guojinwenying”) % % % Shanghai Guochen Equity Management Co., Ltd (“Guochen”) % % % Shanghai JupaiHehui Asset Management Co., Ltd. (‘‘Hehui’’) % % % Others Total investments |
Acquisitions of Subsidiaries (T
Acquisitions of Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions of Subsidiaries | |
Summary of purchase consideration | Amount Fair value of Company’s shares issued * Replacement of Scepter’s share options (Note 14) Consideration |
Schedule of purchase price allocation | Amount Amortization RMB Period Cash and cash equivalents Other current assets Long-term investments Other long-term assets Income tax payable ) Other current liabilities ) Intangible assets acquired: — Contract Backlog 3.5 year Goodwill * Deferred tax liabilities ) |
Summary of revenue and earnings since acquisition date | Since the acquisition date 2015 RMB Revenue Net income attributable to Jupai |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment, Net | |
Schedule of property and equipment | As of December 31, 2015 2016 2016 RMB RMB USD Leasehold improvements Furniture, fixtures and equipment Motor Vehicles Total Accumulated depreciation ) ) ) Property and equipment, net |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net | |
Schedule of intangible assets subject to amortization | As of December 31, 2015 2016 2016 RMB RMB USD Customer contracts Software — Less: Accumulated amortization ) ) ) Intangible assets subject to amortization License with indefinite life — Foreign currency translation adjustment ) ) ) Intangible assets |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill | |
Schedule of movement in carrying amount of goodwill | RMB Balance as of January 1, 2015 — Addition for acquisitions Foreign currency translation adjustments Balance as of January 1, 2016 Addition for acquisitions Foreign currency translation adjustments Balance as of December 31, 2016 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Compensation | |
Schedule of fair value assumptions for options | July 1, 2014 April 2, 2015 July 16, 2015 Risk-free rate of return Contractual life of option 10 years 10 years 10 years Estimated volatility rate Expected dividend yield Fair value of underlying ordinary shares |
Summary of option activity | Number of Weighted Remaining Aggregate RMB RMB Outstanding, as of January 1, 2016 Exercised ) Forfeited ) Outstanding, as of December 31, 2016 Vested and expected to vest as of December 31, 2016 Exercisable as of December 31, 2016 |
Summary of restricted share activity | Number of Weighted RMB Unvested, as of January 1, 2016 Granted Forfeited ) Vested ) Unvested, as of December 31, 2016 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Schedule of tax expense (benefit) | Years Ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD Current Tax Deferred Tax ) ) ) ) Total |
Schedule of reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes | Years Ended December 31, 2014 2015 2016 PRC income tax rate % % % Expenses not deductible for income tax purposes % % % Uncertain tax position impact % % % Different tax rate of subsidiary operation in other jurisdiction % % -0.81 % Effective income tax rate % % % |
Schedule of principal components of the deferred income tax asset and liabilities | As of December 31, 2015 2016 2016 RMB RMB USD Deferred tax assets: Deferred revenue Accrued expenses Discount of investment Tax loss carry forward Impairment for a held-to-maturity investment — — Exchange gain Gross deferred tax assets Valuation allowance — — — Net deferred tax assets Analysis as: Current Non-current Deferred tax liabilities: Amortization of intangible assets Unrealized investment income Total deferred tax liabilities Analysis as: Current Non-current |
Schedule of reconciliation of the beginning and ending amounts of uncertain tax position | RMB Uncertain tax position—January 1, 2014 Gross increases—accrued interest in current period Exchange rate translation — Uncertain tax position—December 31, 2014 Gross increases—accrued interest in current period Exchange rate translation — Uncertain tax position—December 31, 2015 Gross increases—accrued interest in current period Exchange rate translation — Uncertain tax position—December 31, 2016 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurement | |
Schedule of inputs into the fair value measurements of financial assets and financial liabilities measured at fair value on a recurring basis | Fair Value Measurements at Reporting Date Using Description As of December Quoted Prices in Significant Other Significant Short-term investment: Trading securities investments — — Fair Value Measurements at Reporting Date Using Description As of December 31, Quoted Prices in Significant Other Significant Short-term investment: Trading securities investments — — |
Schedule of inputs into the fair value measurements of fixed income products not reported at fair value on consolidated balance sheet | As of December 31, 2015 Fair Value Measurements at Reporting Date Quoted Prices in Significant Active Markets Significant Other Unobservable Carrying for Identical Observable Inputs Description Value Fair Value Assets (Level 1) Inputs (Level 2) (Level 3) Long-term investment-held-to-maturity Trust products — — Asset management plans — — Real estate funds — — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information | |
Schedule of segment reporting information | Year Ended December 31, 2014 2015 2016 2016 RMB RMB RMB USD One-time commissions Related party Third party Recurring management fee Related party Third party — — — Recurring service fees Related party — Third party Other service fees — — Related party — — Third party — — Total revenues |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions | |
Schedule of related party transactions | Company Name Relationship with the Group Hehui Affiliate of Juzhou a. Revenue from Related Parties Years Ended December 31 2014 2015 2016 2016 RMB RMB RMB USD One-time commissions Hehui — Investees of affiliates of Juzhou, a subsidiary of a VIE of the Company Investees of Juzhou, a subsidiary of a VIE of the Company Investees of Jupeng, a subsidiary of a VIE of the Company — Investees of Mingdu, a subsidiary of a VIE of the Company — — — Investees of Yidezeng, a subsidiary of a VIE of the Company — Investees of Yidezhen, a subsidiary of a VIE of the Company — Investees of Yiju, a subsidiary of a VIE of the Company — — — Investees of Jupai Asset management Inc. , a subsidiary of the Company — — Investees of SINA, shareholder of the Company — — Total one-time commissions Recurring management fee Investees of Juzhou, a subsidiary of a VIE of the Company Investees of Jupeng, a subsidiary of a VIE of the Company — Investees of Mingdu, a subsidiary of a VIE of the Company — Investees of Yidezhen, a subsidiary of a VIE of the Company — Investees of Yidezeng, a subsidiary of a VIE of the Company — Investees of Yidexin, a subsidiary of a VIE of the Company — Investees of Yidezhao, a subsidiary of a VIE of the Company — — — Investees of Yiju, a subsidiary of a VIE of the Company — Total recurring management fee Recurring service fee Investees of affiliates of Juzhou, a subsidiary of a VIE of the Company — Investees of affiliates of Yidezeng, a subsidiary of a VIE of the Company — Investees of affiliates of Yidezhen, a subsidiary of a VIE of the Company — — Hehui — — Investees of SINA, shareholder of the Company — — Total recurring service fee — Other Service Fee Investees of Affiliates of Juzhou, a subsidiary of a VIE of the Company — — Investees of Jupeng, a subsidiary of a VIE of the Company — — Total other service fee Total b. Amounts due from Related Parties As of December 31, 2015 2016 2016 RMB RMB USD Investees of Juzhou, a subsidiary of a VIE of the Company Investees of Affiliates of Juzhou, a subsidiary of a VIE of the Company Investees of Jupeng, a subsidiary of a VIE of the Company Investees of Yidexin, a subsidiary of a VIE of the Company — — Investees of Yidezhen, a subsidiary of a VIE of the Company Investees of Yidezeng, a subsidiary of a VIE of the Company Investees of Yidezhao, a subsidiary of a VIE of the Company — — Investees of Yubo, a subsidiary of a VIE of the Company — Investees of Yiju, a subsidiary of a VIE of the Company — Investees of Jupai Asset management Inc. , a subsidiary of the Company — Loan to non-controlling interests shareholder — Total amounts due from related parties c. Deferred Revenue from Related Parties As of December 31, 2015 2016 2016 RMB RMB USD Investee of Affiliates of Juzhou, a subsidiary of a VIE of the Company Investees of Juzhou, a subsidiary of a VIE of the Company Investees of Jupeng, a subsidiary of a VIE of the Company Investees of Yidezhen, a subsidiary of a VIE of the Company Investees of Yidezeng, a subsidiary of a VIE of the Company Hehui — Total amounts due from related parties d. Amounts due to Related Party As of December 31, 2015 2016 2016 RMB RMB USD Sina Hong Kong Limited — — Investees of Yidezhen, a subsidiary of a VIE of the Company — Non-controlling interests shareholder — |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments | |
Schedule of future minimum lease payments under non-cancelable operating lease agreements | Future minimum lease payments under non-cancelable operating lease agreements as of December 31, 2016 were as follows: Year Ended December 31 RMB 2017 2018 2019 2020 2021 and after — Total |
Schedule of investment commitments | The Group was obligated to provide capital injection up to RMB59,895,000 to the following equity method investees as of December 31, 2016: Year Ended December 31 RMB Guojinwenying Shanghai HuijuAsset Management Co., Ltd. Shanghai Jingzhou Asset Management Co., Ltd. Xiamen Zipai Asset Management Co., Ltd. Shanghai Jufu Assets Management Co., Ltd. Shanghai Zhoushi Asset Management Co., Ltd. Shanghai Juzhi Asset Management Co., Ltd. Beijing Donglinjusheng Investment Management Co., Ltd. Shanghai Qihu Financial Information Co., Ltd Hehui Shanghai Xinhao Investment Management Co., Ltd Shanghai Qianchang Investment Management Co., Ltd Shanghai Zhouzhi Investment Management Co., Ltd. Others Total |
Organization and Principal Ac50
Organization and Principal Activities (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2016 | Dec. 31, 2015CNY (¥)shares | Jul. 31, 2015 | Jul. 28, 2010 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Aggregate transaction value of the private placement | ¥ | ¥ 259,108,197 | ||||
Ordinary shares | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Ordinary shares issued in a private placement (in shares) | 29,970,000 | ||||
Aggregate transaction value of the private placement | ¥ | ¥ 91,669 | ||||
Private placement | Ordinary shares | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Aggregate transaction value of the private placement | $ | $ 22.9 | ||||
Hu Tianxiang | Minimum | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Percentage of Ownership | 50.00% | ||||
Juzhou Asset Management (Shanghai) Co., Ltd. ("Juzhou") | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Date of Incorporation/acquisition | May 17, 2013 | ||||
Place of Incorporation | PRC | ||||
Percentage of Ownership | 85.00% | ||||
Shanghai Jupeng Asset Management Co., Ltd. ("Jupeng") | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Date of Incorporation/acquisition | Jun. 8, 2015 | ||||
Place of Incorporation | PRC | ||||
Percentage of Ownership | 90.00% | ||||
Shanghai Yidezhen Equity Investment Center ("Yidezhen") | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Date of Incorporation/acquisition | Jul. 16, 2015 | ||||
Place of Incorporation | PRC | ||||
Percentage of Ownership | 100.00% | ||||
Shanghai Juxiang | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Date of Incorporation/acquisition | Jul. 16, 2013 | ||||
Place of Incorporation | PRC | ||||
Percentage of Ownership | 100.00% | ||||
Baoyi Investment Consulting (Shanghai) Co., Ltd ("Baoyi") | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Date of Incorporation/acquisition | Jul. 16, 2015 | ||||
Place of Incorporation | PRC | ||||
Percentage of Ownership | 100.00% | ||||
Jupai HongKong Investment Limited("Jupai Hong Kong") | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Date of Incorporation/acquisition | Aug. 21, 2012 | ||||
Place of Incorporation | Hong Kong | ||||
Percentage of Ownership | 100.00% | ||||
E-house Investment and Reckon Capital Limited | Scepter Pacific Limited | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Percentage of equity interest acquired | 100.00% | ||||
Julius Baer | Private placement | Ordinary shares | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Ordinary shares issued in a private placement (in shares) | 9,591,000 | ||||
Percentage of the Group's total outstanding share capital | 4.99% | ||||
Shares issued, price per share | $ / shares | $ 1.83 | ||||
Sina Hong Kong Limited | Private placement | Ordinary shares | |||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||
Ordinary shares issued in a private placement (in shares) | 2,880,000 | ||||
Percentage of the Group's total outstanding share capital | 1.50% | ||||
Shares issued, price per share | $ / shares | $ 1.83 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - VIEs (Details) | 12 Months Ended | |||||||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2013CNY (¥) | |
Variable interest entity | ||||||||
Accounts receivable | $ 5,654,369 | ¥ 39,258,288 | ¥ 5,280,000 | |||||
Investments | 5,367,222 | 37,264,623 | 15,050,001 | |||||
Maximum exposure to loss in non-consolidated VIEs | 11,021,591 | 76,522,911 | 20,330,001 | |||||
Cash and cash equivalents | 161,769,575 | ¥ 193,098,712 | 1,123,166,156 | $ 114,575,423 | 795,497,163 | ¥ 32,577,822 | ||
Short-term investments | 3,630,995 | 25,210,000 | 72,446,602 | |||||
Accounts receivable, net of allowance for doubtful accounts | 7,505,681 | 52,111,944 | 26,008,543 | |||||
Trade and other receivables | 11,384,390 | 79,041,821 | 33,539,256 | |||||
Amounts due from related parties | 19,236,711 | 133,560,483 | 11,923,607 | |||||
Deferred tax assets | 8,035,629 | 55,791,373 | 46,020,741 | |||||
Other current assets | 1,807,747 | 12,551,186 | 6,659,354 | |||||
Investments at cost method | 10,146,911 | 70,450,000 | 60,450,000 | |||||
Long-term prepayments | 901,793 | 6,261,152 | 1,900,385 | |||||
Advance prepayment for acquisition | 11,170,964 | 77,560,000 | 94,888,600 | |||||
Investment in affiliates | 12,362,155 | 85,830,444 | 34,732,868 | |||||
Property and equipment, net | 5,357,887 | 37,199,812 | 16,064,933 | |||||
Deferred tax assets- non-current | 1,223,497 | 8,494,738 | 8,073,577 | |||||
Total Assets | 306,503,589 | 2,128,054,419 | 1,569,402,314 | |||||
Accrued payroll and welfare expenses | 14,671,469 | 101,864,007 | 80,806,138 | |||||
Income tax payable | 19,895,119 | 138,131,812 | 103,337,008 | |||||
Other tax payable | 8,381,000 | 58,189,283 | 39,220,006 | |||||
Dividend payable | 1,463,417 | 10,160,503 | 7,499,998 | |||||
Deferred revenue - current from related parties | 17,520,416 | 121,644,250 | 83,752,232 | |||||
Deferred revenues - current | 5,247,328 | 36,432,195 | 58,157,948 | |||||
Amounts due to related parties-current | 881,273 | 6,118,678 | ||||||
Other current liabilities | 1,497,481 | 10,397,008 | 4,742,957 | |||||
Non-current uncertain tax position liabilities | 855,367 | 5,938,816 | 5,372,253 | |||||
Deferred revenue - non-current from related parties | 10,861,820 | 75,413,617 | 30,708,429 | |||||
Deferred revenue - non-current | 817,788 | 5,677,905 | 3,561,506 | |||||
Total Liabilities | 83,506,218 | 579,783,669 | 465,133,224 | |||||
Net revenues | 162,424,088 | ¥ 1,127,710,444 | ¥ 595,009,277 | 237,676,749 | ||||
Operating cost and expenses | 119,963,334 | 832,905,436 | 391,128,371 | 128,702,047 | ||||
Net income attributable to Jupai | 29,898,297 | 207,583,868 | 153,476,506 | 87,786,008 | ||||
Cash flows generated from operating activities: | 27,115,620 | 188,263,729 | 369,053,507 | 149,448,775 | ||||
Cash flows generated from/(used in) investing activities: | 270,502 | 1,878,091 | (75,307,251) | (36,776,769) | ||||
Cash flows generated from/(used in) financing activities: | $ 16,477,953 | ¥ 114,406,429 | 293,994,196 | 47,730,387 | ||||
Shanghai Jupai | ||||||||
Variable interest entity | ||||||||
Notice period for termination of voting rights proxy agreement with VIE | 30 days | 30 days | ||||||
Consolidated VIE and VIE's subsidiaries | ||||||||
Variable interest entity | ||||||||
Cash and cash equivalents | $ 85,064,968 | 590,606,072 | 296,973,789 | |||||
Short-term investments | 750,396 | 5,210,000 | 33,515,632 | |||||
Accounts receivable, net of allowance for doubtful accounts | 319,319 | 2,217,032 | 2,756,170 | |||||
Trade and other receivables | 2,465,212 | 17,115,966 | 15,136,608 | |||||
Amounts due from related parties | 2,679,042 | 18,600,587 | 9,341,290 | |||||
Deferred tax assets | 7,851,780 | 54,514,909 | 40,634,183 | |||||
Other current assets | 691,314 | 4,799,791 | 5,187,146 | |||||
Investments at cost method | 7,266,311 | 150,450,000 | 48,450,000 | |||||
Long-term prepayments | 167,026 | 1,159,664 | ||||||
Advance prepayment for acquisition | 17,328,600 | |||||||
Investment in affiliates | 9,408,622 | 65,324,060 | 34,075,229 | |||||
Property and equipment, net | 1,335,281 | 9,270,856 | 9,384,843 | |||||
Deferred tax assets- non-current | 549,940 | 3,818,230 | 8,073,577 | |||||
Total Assets | 118,549,211 | 823,087,167 | 512,857,067 | |||||
Accrued payroll and welfare expenses | 1,901,530 | 13,202,322 | 28,071,443 | |||||
Income tax payable | 12,778,341 | 88,720,024 | 61,723,954 | |||||
Other tax payable | 4,414,662 | 30,650,996 | 19,108,658 | |||||
Dividend payable | 1,463,417 | 10,160,503 | 7,499,998 | |||||
Deferred revenue - current from related parties | 16,875,574 | 117,167,110 | 78,206,048 | |||||
Deferred revenues - current | 5,199,318 | 36,098,862 | 49,773,048 | |||||
Amounts due to related parties-current | 206,784 | 1,435,700 | ||||||
Other current liabilities | 250,304 | 1,737,863 | 2,106,219 | |||||
Non-current uncertain tax position liabilities | 855,367 | 5,938,816 | 5,372,253 | |||||
Deferred revenue - non-current from related parties | 10,773,174 | 74,798,150 | 28,732,803 | |||||
Deferred revenue - non-current | 804,201 | 5,583,565 | 3,561,506 | |||||
Total Liabilities | 55,522,672 | ¥ 385,493,911 | ¥ 284,155,930 | |||||
Net revenues | 105,571,209 | ¥ 732,980,901 | 240,154,536 | 26,924,259 | ||||
Third party | 14,186,989 | 98,500,261 | 80,417,496 | 17,974,372 | ||||
Related party | 91,384,220 | 634,480,640 | 159,737,040 | 8,949,887 | ||||
Operating cost and expenses | 58,127,923 | 403,582,170 | 166,671,341 | 24,552,150 | ||||
Net income attributable to Jupai | 18,971,349 | 131,718,076 | 49,097,295 | 9,108,671 | ||||
Cash flows generated from operating activities: | 39,936,103 | 277,276,364 | 231,200,063 | 61,721,334 | ||||
Cash flows generated from/(used in) investing activities: | 2,244,119 | 15,580,919 | (30,079,891) | 19,737,239 | ||||
Cash flows generated from/(used in) financing activities: | $ 111,623 | ¥ 775,000 | ¥ (1,080,093) | ¥ 194,790 | ||||
Shanghai E-Cheng | ||||||||
Variable interest entity | ||||||||
Voting right proxy agreement (in years) | 20 years | 20 years | ||||||
Extension term of agreement (in years) | 1 year | 1 year | ||||||
Term of loan agreement (in years) | 20 years | 20 years |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - VIE percentages (Details) - item | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable interest entity | |||
Number of terms in arrangements to provide financial support to VIEs | 0 | ||
Consolidated VIE and VIE's subsidiaries | |||
Variable interest entity | |||
Percentage of consolidated revenues contributed by VIE | 65.00% | 40.00% | 11.00% |
Percentage of consolidated net income contributed by VIE | 63.00% | 32.00% | 12.00% |
Percentage of consolidated total assets contributed by VIE | 39.00% | 33.00% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Investments in affiliates (Details) | Dec. 31, 2016 |
Funds | Maximum | |
Investments in affiliates | |
Equity method investment, ownership percentage (in percentage) | 5.00% |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - PPE (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Furniture, fixtures and equipment | Minimum | |
Property and Equipment, Net | |
Useful life (in years) | 3 years |
Furniture, fixtures and equipment | Maximum | |
Property and Equipment, Net | |
Useful life (in years) | 5 years |
Motor Vehicles | |
Property and Equipment, Net | |
Useful life (in years) | 5 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Misc (Details) | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
Apr. 30, 2016 | Dec. 31, 2016¥ / $ | Dec. 31, 2016USD ($)item¥ / $ | Dec. 31, 2016CNY (¥)item¥ / $ | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Revenue recognition | ||||||
Number of criteria to be met for recognition of revenue from one-time commissions | item | 2 | 2 | ||||
Business Tax and Related Surcharges | ||||||
Business taxes and related surcharge rate (as a percentage) | 5.00% | |||||
VAT rate, minimum (as a percentage) | 3.00% | |||||
VAT rate, maximum (as a percentage) | 6.00% | |||||
Foreign Currency Translation | ||||||
Change in cumulative foreign currency translation adjustment | $ 6,341,192 | ¥ 44,026,895 | ¥ 34,375,809 | ¥ 99,213 | ||
Exchange rate of RMB to US$1.00 | ¥ / $ | 6.9430 | 6.9430 | 6.9430 |
Net Income per Share - Basic an
Net Income per Share - Basic and diluted (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | |
Net income attributable to ordinary shareholders - basic | $ 29,898,297 | ¥ 207,583,868 | ¥ 120,877,378 | ¥ 30,409,051 |
Amounts allocated to convertible redeemable preferred shares for participating rights to dividends | ¥ | 32,599,128 | 11,178,067 | ||
Net income attribute to ordinary shareholders | $ 29,898,297 | ¥ 207,583,868 | ¥ 153,476,506 | ¥ 41,587,118 |
Weighted average number of ordinary shares outstanding - basic | 192,674,014 | 192,674,014 | 114,124,300 | 83,683,960 |
Plus: convertible redeemable preferred shares | 30,761,401 | |||
Weighted average number of ordinary shares outstanding-diluted | 200,765,917 | 200,765,917 | 119,598,947 | 114,445,361 |
Basic net income per share | (per share) | $ 0.16 | ¥ 1.08 | ¥ 1.06 | ¥ 0.36 |
Diluted net income per share | (per share) | $ 0.15 | ¥ 1.03 | ¥ 1.01 | ¥ 0.36 |
Share options | ||||
Plus: share options and restricted shares | 7,422,663 | 7,422,663 | 5,474,647 | |
Restricted shares | ||||
Plus: share options and restricted shares | 669,240 | 669,240 |
Net Income per Share - Antidilu
Net Income per Share - Antidilutive securities excluded (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Total | 425,000 | 37,044,906 | 12,028,400 |
Share options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Total | 425,000 | 3,586,600 | 12,028,400 |
Restricted shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Total | 2,680,400 | ||
Convertible redeemable preferred shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Total | 30,777,906 |
Accounts receivable and amoun58
Accounts receivable and amounts due from related parties (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Accounts receivable | |||
Within 1 year | $ 7,505,681 | ¥ 52,111,944 | ¥ 26,008,543 |
Total | 7,505,681 | 52,111,944 | 26,008,543 |
Additional information | |||
Amounts due from related parties | $ 19,236,711 | 133,560,483 | 11,923,607 |
Allowance for accounts receivable | 0 | 0 | |
Allowance for amounts due from related parties | ¥ 0 | ¥ 0 |
Investments - Investment balanc
Investments - Investment balances (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Short-term investments | |||
Trading securities investments | $ 750,396 | ¥ 5,210,000 | ¥ 6,776,400 |
Held-to-maturity investments | 2,880,599 | 20,000,000 | 65,670,202 |
Total short-term investments | 3,630,995 | 25,210,000 | 72,446,602 |
Long-term investments | |||
Held-to-maturity investments | 44,859,168 | ||
Investments at cost method | 10,146,911 | 70,450,000 | 60,450,000 |
Total investments | 13,777,906 | 95,660,000 | 177,755,770 |
Trust products | |||
Short-term investments | |||
Trading securities investments | 750,396 | 5,210,000 | 6,776,400 |
Held-to-maturity investments | $ 2,880,599 | 20,000,000 | 15,640,080 |
Long-term investments | |||
Held-to-maturity investments | 29,875,953 | ||
Asset management plans | |||
Short-term investments | |||
Held-to-maturity investments | 50,030,122 | ||
Long-term investments | |||
Held-to-maturity investments | 5,146,575 | ||
Real estate funds | |||
Long-term investments | |||
Held-to-maturity investments | 9,836,640 | ||
Investments at cost method | ¥ 10,000,000 | ¥ 10,000,000 |
Investments - Trading and held
Investments - Trading and held to maturity (Details) | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Investments | |||||
Impairment loss | ¥ 3,200,000 | ¥ 800,000 | |||
Trading securities transferred | 0 | 0 | ¥ 0 | ||
Available-for-sale securities transferred | 0 | 0 | 0 | ||
Held-to-maturity securities transferred | 0 | 0 | 0 | ||
Investments at cost method | 60,450,000 | $ 10,146,911 | 70,450,000 | ||
Real estate funds | |||||
Investments | |||||
Investments at cost method | 10,000,000 | 10,000,000 | |||
Private equity funds | |||||
Investments | |||||
Investments at cost method | 10,000,000 | 10,000,000 | |||
Private company | |||||
Investments | |||||
Investments at cost method | 40,450,000 | 40,450,000 | |||
Convertible preferred shares in a private company | |||||
Investments | |||||
Investments at cost method | ¥ 10,000,000 | ||||
Trading securities | |||||
Investments | |||||
Investment income (loss) | ¥ (1,566,400) | 3,801,448 | 1,222,907 | ||
Held-to-maturity investments | |||||
Investments | |||||
Investment income (loss) | 8,578,449 | 10,406,838 | 7,901,016 | ||
Impairment loss | 0 | 3,200,000 | 800,000 | ||
Gross unrecognized holding gain | 0 | 915,933 | |||
Held-to-maturity investments | Trust products | |||||
Investments | |||||
Investment income (loss) | 3,383,521 | 3,024,672 | 2,221,785 | ||
Held-to-maturity investments | Asset management plans | |||||
Investments | |||||
Investment income (loss) | 4,383,407 | 5,022,717 | 5,066,018 | ||
Held-to-maturity investments | Real estate funds | |||||
Investments | |||||
Investment income (loss) | ¥ 811,521 | ¥ 2,359,449 | ¥ 613,213 |
Investment in affiliates (Detai
Investment in affiliates (Details) | 1 Months Ended | 8 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Aug. 31, 2014 | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | |
Investment in affiliates | ||||||||
Total investments | $ 12,362,155 | ¥ 85,830,444 | ¥ 34,732,868 | |||||
Cost method investments | 10,146,911 | 70,450,000 | 60,450,000 | |||||
Private equity funds that the Company serves as general partner or fund manager | ||||||||
Investment in affiliates | ||||||||
Total investments | 3,695,160 | 25,655,495 | 3,443,728 | |||||
Juyuan | ||||||||
Investment in affiliates | ||||||||
Total investments | $ 1,467,104 | ¥ 10,186,105 | ||||||
Equity method investment, ownership percentage (in percentage) | 64.00% | 64.00% | ||||||
Payments to acquire equity investments | ¥ 10,000,000 | |||||||
Wuling Center | ||||||||
Investment in affiliates | ||||||||
Total investments | $ 1,379,924 | ¥ 9,580,813 | ¥ 10,081,898 | |||||
Equity method investment, ownership percentage (in percentage) | 1.10% | 1.10% | 1.10% | |||||
Changjiang Jupai | ||||||||
Investment in affiliates | ||||||||
Total investments | $ 1,239,563 | ¥ 8,606,286 | ||||||
Equity method investment, ownership percentage (in percentage) | 40.00% | 40.00% | ||||||
Payments to acquire equity investments | 8,000,000 | |||||||
Qihu | ||||||||
Investment in affiliates | ||||||||
Total investments | $ 813,410 | ¥ 5,647,506 | ||||||
Equity method investment, ownership percentage (in percentage) | 30.00% | 30.00% | ||||||
Payments to acquire equity investments | ¥ 4,500,000 | |||||||
Guojinwenying | ||||||||
Investment in affiliates | ||||||||
Total investments | $ 666,352 | ¥ 4,626,479 | ¥ 4,556,648 | |||||
Equity method investment, ownership percentage (in percentage) | 45.00% | 45.00% | 45.00% | 45.00% | 45.00% | |||
Equity method investment, cost | ¥ 4,500,000 | |||||||
Guochen | ||||||||
Investment in affiliates | ||||||||
Total investments | $ 625,583 | ¥ 4,343,426 | ¥ 4,607,703 | |||||
Equity method investment, ownership percentage (in percentage) | 8.30% | 8.30% | 8.30% | |||||
Hehui | ||||||||
Investment in affiliates | ||||||||
Total investments | $ 531,577 | ¥ 3,690,738 | ¥ 3,813,934 | |||||
Equity method investment, ownership percentage (in percentage) | 49.00% | 49.00% | 49.00% | |||||
Ownership percentage before sale of stock (in percentage) | 65.00% | |||||||
Ownership percentage disposed (in percentage) | 16.00% | |||||||
Ownership percentage after sale of stock (in percentage) | 49.00% | |||||||
Others | ||||||||
Investment in affiliates | ||||||||
Total investments | $ 1,943,482 | ¥ 13,493,596 | ¥ 8,228,957 | |||||
Shanghai Yidezhao Equity Investment Center ("Yidezhao") | Guochen | ||||||||
Investment in affiliates | ||||||||
Equity method investment, ownership percentage (in percentage) | 8.30% | 8.30% | ||||||
Equity method investment, cost | $ 408,563 | ¥ 2,500,000 | ||||||
Shanghai Yidezhen Equity Investment Center ("Yidezhen") | Wuling Center | ||||||||
Investment in affiliates | ||||||||
Equity method investment, ownership percentage (in percentage) | 1.10% | 1.10% | ||||||
Shanghai Juxiang | Private equity funds of funds | Maximum | ||||||||
Investment in affiliates | ||||||||
Equity method investment, ownership percentage (in percentage) | 4.00% | 4.00% |
Acquisitions of Subsidiaries (D
Acquisitions of Subsidiaries (Details) | 1 Months Ended | 5 Months Ended | ||||
May 31, 2016CNY (¥) | Mar. 31, 2016CNY (¥)item | Jul. 31, 2015CNY (¥)shares | Dec. 31, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Acquisitions of Subsidiaries | ||||||
Cash consideration | ¥ 5,081,739 | |||||
Purchase price allocation | ||||||
Goodwill | ¥ 259,714,506 | $ 40,004,719 | ¥ 277,752,765 | |||
Scepter Pacific Limited | ||||||
Acquisitions of Subsidiaries | ||||||
Fair value of Company's shares issued | ¥ 331,165,663 | |||||
Replacement of Scepter's share options (Note 14) | 13,702,194 | |||||
Consideration | 344,867,857 | |||||
Purchase price allocation | ||||||
Cash and cash equivalents | 35,655,387 | |||||
Other current assets | 17,917,590 | |||||
Long-term investments | 29,807,957 | |||||
Other long-term assets | 1,395,760 | |||||
Income tax payable | (12,526,909) | |||||
Other current liabilities | (16,561,427) | |||||
Goodwill | 244,664,213 | |||||
Deferred tax liabilities | (14,838,429) | |||||
Total purchase price | 344,867,857 | |||||
Revenue of Scepter since the acquisition date | 25,583,347 | |||||
Earnings of Scepter since the acquisition date | ¥ 11,291,367 | |||||
Scepter Pacific Limited | Contract Backlog | ||||||
Purchase price allocation | ||||||
Intangible assets acquired | ¥ 59,353,715 | |||||
Intangible assets acquired, amortization period | 3 years 6 months | |||||
Scepter Pacific Limited | E-house Investment and Reckon Capital Limited | ||||||
Acquisitions of Subsidiaries | ||||||
Percentage of equity interest acquired | 100.00% | |||||
Ordinary shares issued for acquisition | shares | 32,481,552 | |||||
UP Capital | ||||||
Acquisitions of Subsidiaries | ||||||
Percentage of equity interest acquired | 34.00% | |||||
Percentage of benefits and costs | 70.00% | |||||
Number of board seat held | item | 2 | |||||
Total number of board seats | item | 3 | |||||
Purchase price allocation | ||||||
Goodwill | ¥ 288,890 | |||||
Non-linear | ||||||
Acquisitions of Subsidiaries | ||||||
Percentage of equity interest acquired | 85.00% | |||||
Cash consideration | ¥ 896,162 | |||||
Purchase price allocation | ||||||
Goodwill | 0 | |||||
Non-linear | License | ||||||
Purchase price allocation | ||||||
Intangible assets acquired | ¥ 1,075,154 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Property and Equipment, Net | |||||
Total | ¥ 24,665,790 | $ 8,184,114 | ¥ 56,822,303 | ||
Accumulated depreciation | (8,600,857) | (2,826,227) | (19,622,491) | ||
Property and equipment, net | 16,064,933 | 5,357,887 | 37,199,812 | ||
Depreciation expense | ¥ 10,924,678 | 5,007,143 | ¥ 2,300,676 | ||
Leasehold improvements | |||||
Property and Equipment, Net | |||||
Total | 12,958,381 | 4,679,825 | 32,492,026 | ||
Furniture, fixtures and equipment | |||||
Property and Equipment, Net | |||||
Total | 8,906,037 | 2,873,979 | 19,954,033 | ||
Motor Vehicles | |||||
Property and Equipment, Net | |||||
Total | ¥ 2,801,372 | $ 630,310 | ¥ 4,376,244 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Intangible assets | |||||
Less : Accumulated amortization | ¥ (8,012,652) | $ (3,855,360) | ¥ (26,767,764) | ||
Intangible assets subject to amortization, net | 54,992,151 | 8,241,629 | 57,221,627 | ||
Foreign currency translation adjustment | (237,979) | (203,368) | (1,411,983) | ||
Intangible assets | 54,754,172 | 11,964,935 | 83,072,545 | ||
Amortization expense | ¥ 18,755,112 | 8,012,652 | ¥ 0 | ||
Future amortization expense | |||||
2,017 | 20,213,308 | ||||
2,018 | 20,213,308 | ||||
2,019 | 1,767,390 | ||||
License | |||||
Intangible assets | |||||
License with indefinite life | 3,926,674 | 27,262,901 | |||
Customer contracts | |||||
Intangible assets | |||||
Intangible assets subject to amortization, gross | ¥ 63,004,803 | 9,691,960 | 67,291,278 | ||
Software | |||||
Intangible assets | |||||
Intangible assets subject to amortization, gross | $ 2,405,029 | ¥ 16,698,113 |
Goodwill - Carrying amount of g
Goodwill - Carrying amount of goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Movement in carrying amount of goodwill | |||
Balance at the beginning | ¥ 259,714,506 | ||
Foreign currency translation adjustments | 17,733,986 | ¥ 15,050,293 | |
Addition for acquisitions | 304,273 | 244,664,213 | |
Balance at the end | $ 40,004,719 | ¥ 277,752,765 | ¥ 259,714,506 |
Prepayment for acquisition (Det
Prepayment for acquisition (Details) $ in Millions | 1 Months Ended | ||||
Mar. 31, 2016USD ($)shareholder | Mar. 31, 2016CNY (¥)shareholder | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2016 | |
Prepayment for acquisition | |||||
Advance prepayment for acquisition | ¥ | ¥ 5,081,739 | ||||
Runju | |||||
Prepayment for acquisition | |||||
Percentage of equity interest acquired | 71.00% | 71.00% | 71.00% | ||
Number of existing shareholders from whom shares are acquired | shareholder | 2 | 2 | |||
Consideration | $ 13 | ¥ 90,500,000 | |||
Advance prepayment for acquisition | $ 11.2 | ¥ 77,600,000 |
Deferred Revenue (Details)
Deferred Revenue (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Deferred revenue | |||
Deferred revenue from related parties | ¥ 197,057,867 | ¥ 114,460,661 | |
Deferred revenue - current from related parties | $ 17,520,416 | 121,644,250 | 83,752,232 |
Deferred revenue - non-current from related parties | $ 10,861,820 | 75,413,617 | 30,708,429 |
Deferred revenue from third parties | 42,110,100 | ¥ 61,719,454 | |
Deferred revenue from third parties-Current | 36,432,195 | ||
Deferred revenue from third parties-Non current | ¥ 5,677,905 |
Dividends (Details)
Dividends (Details) | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2017CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Sep. 30, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Jun. 30, 2014CNY (¥) | |
Dividends | |||||||
Dividend payable | $ 1,463,417 | ¥ 10,160,503 | ¥ 7,499,998 | ||||
Dividend payable, noncontrolling interest holder | ¥ 10,160,503 | ||||||
Scepter Pacific Limited | |||||||
Dividends | |||||||
Dividend payable | ¥ 31,500,000 | ||||||
Dividend paid | ¥ 24,000,002 | ||||||
Juzhou Asset Management (Shanghai) Co., Ltd. ("Juzhou") | |||||||
Dividends | |||||||
Dividend payable | ¥ 67,736,687 | ||||||
Dividend paid | ¥ 67,736,687 |
Share-Based Compensation - Opti
Share-Based Compensation - Options (Details) | Apr. 02, 2015$ / sharesshares | Jul. 01, 2014$ / sharesshares | Dec. 31, 2015shares | Jul. 31, 2014shares | Dec. 31, 2016¥ / shares |
Share options | |||||
Share-Based Compensation | |||||
Options granted (in shares) | 1,061,600 | 12,056,000 | |||
Options exercised (in dollars per share) | $ / shares | $ 1 | $ 0.48 | |||
Expiration period of awards granted | 10 years | 10 years | |||
Vesting period | 3 years | 3 years | |||
2014 Plan | |||||
Share-Based Compensation | |||||
Ordinary shares initially authorized under the Plan | 26,938,020 | 17,570,281 | |||
Percent of ordinary shares authorized to increase on each of the third, sixth and ninth anniversaries of the effective date | 5.00% | ||||
Increase in ordinary shares authorized under the Plan | 9,367,739 | ||||
2014 Plan | Share options | |||||
Share-Based Compensation | |||||
Options exercised (in dollars per share) | ¥ / shares | ¥ 3.98 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions and activity (Details) | Aug. 26, 2015$ / sharesshares | Jul. 16, 2015$ / shares | Apr. 02, 2015$ / shares | Jul. 01, 2014$ / shares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)shares |
Fair value assumptions for options | |||||||
Risk-free rate of return (as a percent) | 2.96% | 2.52% | 3.18% | ||||
Contractual life of option | 10 years | 10 years | 10 years | ||||
Estimated volatility rate (as a percent) | 58.85% | 58.86% | 60.57% | ||||
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | ||||
Fair value of underlying ordinary shares (in dollars per share) | $ / shares | $ 1.67 | $ 1.24 | $ 0.60 | ||||
Compensation expense | ¥ | ¥ 13,440,801 | ¥ 15,895,439 | ¥ 3,046,402 | ||||
Number of Options | |||||||
Exercised (in shares) | (789,480) | 0 | 0 | ||||
2014 Plan | |||||||
Fair value assumptions for options | |||||||
Replacement options | 2,525,000 | ||||||
Scepter Plan | |||||||
Fair value assumptions for options | |||||||
Options replaced | 505,000 | ||||||
Options Replacement Program | |||||||
Fair value assumptions for options | |||||||
Share based compensation costs capitalized | ¥ | ¥ 13,702,194 | ||||||
Unrecognized compensation expense | ¥ | ¥ 3,675,035 | ||||||
Weighted average remaining period over which unrecognized compensation expense will be recognized | 1 year 8 months 12 days | ||||||
Share options | |||||||
Fair value assumptions for options | |||||||
Vesting period | 3 years | 3 years | |||||
Weighted Average Exercise Price | |||||||
Exercised (in dollars per share) | $ / shares | $ 1 | $ 0.48 | |||||
Share options | 2014 Plan | |||||||
Fair value assumptions for options | |||||||
Unrecognized compensation expense | ¥ | ¥ 9,234,833 | ||||||
Weighted average remaining period over which unrecognized compensation expense will be recognized | 7 months 6 days | ||||||
Number of Options | |||||||
Outstanding at beginning of year (in shares) | 15,066,100 | ||||||
Exercised (in shares) | (789,480) | ||||||
Forfeited (in shares) | (294,277) | ||||||
Outstanding at end of year (in shares) | 13,982,343 | 15,066,100 | |||||
Vested and expected to vest (in shares) | 13,688,427 | ||||||
Exercisable at end of year (in shares) | 8,414,308 | ||||||
Weighted Average Exercise Price | |||||||
Outstanding at beginning of year (in dollars per share) | ¥ / shares | ¥ 3.64 | ||||||
Exercised (in dollars per share) | ¥ / shares | 3.98 | ||||||
Forfeited (in dollars per share) | ¥ / shares | 3.53 | ||||||
Outstanding at end of year (in dollars per share) | ¥ / shares | ¥ 3.87 | ¥ 3.64 | |||||
Remaining Contractual Term | |||||||
Outstanding at end of year (in years) | 7 years 8 months 19 days | ||||||
Aggregate Intrinsic Value of Options | |||||||
Outstanding at end of year | ¥ | ¥ 6.20 | ||||||
Restricted shares | |||||||
Fair value assumptions for options | |||||||
Vesting period | 3 years | ||||||
Compensation expense | ¥ | ¥ 7,982,893 | ||||||
Fair value of non-vested restricted shares vested | ¥ | ¥ 21,065,942 | ||||||
Restricted shares | 2014 Plan | |||||||
Fair value assumptions for options | |||||||
Restricted shares granted | 486,000 | ||||||
Unrecognized compensation expense | ¥ | ¥ 16,106,594 | ||||||
Weighted average remaining period over which unrecognized compensation expense will be recognized | 1 year 7 months 6 days | ||||||
Number of Shares | |||||||
Unvested, at beginning of year | 2,680,400 | ||||||
Granted | 486,000 | ||||||
Forfeited | (180,000) | ||||||
Vested | (873,467) | ||||||
Unvested, at end of year | 2,112,933 | 2,680,400 | |||||
Weighted Average Grant-date Fair Value | |||||||
Unvested, at beginning of year | ¥ / shares | ¥ 9.42 | ||||||
Granted | ¥ / shares | 9.31 | ||||||
Forfeited | ¥ / shares | 9.37 | ||||||
Vested | ¥ / shares | 9.72 | ||||||
Unvested, at end of year | ¥ / shares | ¥ 9.97 | ¥ 9.42 | |||||
Restricted shares | Senior management and independent directors | |||||||
Fair value assumptions for options | |||||||
Restricted shares granted | 2,680,400 | ||||||
Number of Shares | |||||||
Granted | 2,680,400 | ||||||
Weighted Average Grant-date Fair Value | |||||||
Granted | $ / shares | $ 1.45 |
Income Taxes - Tax expense and
Income Taxes - Tax expense and deferred reconciliation (Details) | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016CNY (¥) | |
The tax expense (benefit) comprises: | |||||
Current Tax | $ 14,094,471 | ¥ 97,857,914 | ¥ 103,835,541 | ¥ 46,168,088 | |
Deferred Tax | (2,195,849) | (15,245,782) | (36,589,051) | (11,857,357) | |
Total | $ 11,898,622 | ¥ 82,612,132 | ¥ 67,246,490 | ¥ 34,310,731 | |
Reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes | |||||
PRC income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | |
Expenses not deductible for income tax purposes | 2.18% | 2.18% | 3.71% | 1.83% | |
Uncertain tax position impact | 0.18% | 0.18% | 0.24% | 0.46% | |
Different tax rate of subsidiary operation in other jurisdiction | (0.81%) | (0.81%) | 0.27% | 0.56% | |
Effective income tax rate | 26.55% | 26.55% | 29.22% | 27.85% | |
Deferred tax assets: | |||||
Deferred revenue | $ 8,101,167 | ¥ 42,277,626 | ¥ 56,246,396 | ||
Accrued expenses | 98,279 | 1,908,443 | 682,349 | ||
Discount of investment | 5,095 | 321,297 | 35,377 | ||
Tax loss carry forward | 1,105,180 | 9,225,009 | 7,673,267 | ||
Impairment for a held-to-maturity investment | 1,000,000 | ||||
Exchange gain | 14,942 | 710,586 | 103,745 | ||
Gross deferred tax assets | 9,324,663 | 55,442,961 | 64,741,134 | ||
Net deferred tax assets | 9,324,663 | 55,442,961 | 64,741,134 | ||
Analysis as: | |||||
Current | 8,101,166 | 47,369,384 | 56,246,396 | ||
Non-current | 1,223,497 | 8,073,577 | 8,494,738 | ||
Deferred tax liabilities: | |||||
Amortization of intangible assets | 1,413,740 | 13,688,541 | 9,815,595 | ||
Unrealized investment income | 65,537 | 1,348,643 | 455,023 | ||
Total deferred tax liabilities | 1,479,277 | 15,037,184 | 10,270,618 | ||
Analysis as: | |||||
Current | 65,537 | 1,348,643 | 455,023 | ||
Non-current | $ 1,413,740 | ¥ 13,688,541 | ¥ 9,815,595 | ||
HONG KONG | |||||
Reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes | |||||
Foreign income tax rate | 16.50% | 16.50% |
Income Taxes - Carryforward and
Income Taxes - Carryforward and valuation allowance (Details) | 12 Months Ended |
Dec. 31, 2016CNY (¥) | |
Undistributed earnings | |
Undistributed earnings of the Company's PRC subsidiaries | ¥ 704,400,000 |
Provision for PRC dividend withholding tax | ¥ 0 |
Withholding tax rate of the profit distribution (as a percent) | 10.00% |
Preferential withholding tax rate of the profit distribution (as a percent) | 5.00% |
Aggregate undistributed earnings of the Company's PRC VIE and its' VIE's subsidiaries | ¥ 370,300,000 |
PRC | |
Operating loss carryforwards | |
Operating loss carry forward | 36,204,005 |
Operating loss carry forward, valuation allowance | 0 |
Minimum | |
Undistributed earnings | |
Unrecognized deferred tax liabilities for undistributed earnings | 35,200,000 |
Maximum | |
Undistributed earnings | |
Unrecognized deferred tax liabilities for undistributed earnings | ¥ 70,400,000 |
Income Taxes - Uncertain tax po
Income Taxes - Uncertain tax positions (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Uncertain tax position | |||
Uncertain tax position, beginning balance | ¥ 5,372,253 | ¥ 4,805,691 | ¥ 4,239,129 |
Gross increases - accrued interest in current period | 566,563 | 566,562 | 566,562 |
Uncertain tax position, ending balance | ¥ 5,938,816 | ¥ 5,372,253 | ¥ 4,805,691 |
PRC | |||
Uncertain tax position | |||
Statue of limitations, computational errors | 3 years | ||
Statue of limitations, special circumstances | 5 years | ||
Threshold of underpayment of tax liability for statute of limitations extended to five years | ¥ 100,000 | ||
Statue of limitations, related party transaction | 10 years | ||
Statue of limitations, tax evasion | 0 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefit Plans | |||
Contributions to employee benefit plan | ¥ 61.2 | ¥ 24.9 | ¥ 11 |
Ongoing obligation to employees subsequent to contributions to employee benefit plans | ¥ 0 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
PRC subsidiaries, VIE and VIE's subsidiaries | ||
Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries [Line Items] | ||
Required percentage of annual appropriations to general reserve fund | 15.00% | |
Limit of general reserve fund as a percentage of registered capital, after which allocations to general reserve fund are no longer required | 50.00% | |
General reserve fund | ¥ 59,269,800 | ¥ 42,595,219 |
Share capital | 344,127,537 | 327,146,223 |
Restricted net assets, including general reserve and registered capital | 403,397,337 | 369,741,442 |
PRC VIE and VIE's subsidiaries | ||
Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries [Line Items] | ||
Restricted net assets, including general reserve and registered capital | ¥ 168,975,590 | ¥ 146,687,889 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Fair Value Measurement | |||
Long-term investment, carrying value | ¥ 44,859,168 | ||
Liabilities measured at fair value on a non-recurring basis | 0 | ¥ 0 | ¥ 0 |
Impairment loss for a held-to-maturity investment | 3,200,000 | 800,000 | |
Fair Value | Trust products | |||
Fair Value Measurement | |||
Investments, fair value | 30,607,124 | ||
Fair Value | Asset management plans | |||
Fair Value Measurement | |||
Investments, fair value | 5,194,322 | ||
Fair Value | Real estate funds | |||
Fair Value Measurement | |||
Investments, fair value | 9,973,655 | ||
Carrying Value | Trust products | |||
Fair Value Measurement | |||
Long-term investment, carrying value | 29,875,953 | ||
Carrying Value | Asset management plans | |||
Fair Value Measurement | |||
Long-term investment, carrying value | 5,146,575 | ||
Carrying Value | Real estate funds | |||
Fair Value Measurement | |||
Long-term investment, carrying value | 9,836,640 | ||
Level 2 | Fair Value | |||
Fair Value Measurement | |||
Impairment loss for a held-to-maturity investment | 3,200,000 | 800,000 | |
Level 2 | Fair Value | Trust products | |||
Fair Value Measurement | |||
Investments, fair value | 30,607,124 | ||
Level 2 | Fair Value | Asset management plans | |||
Fair Value Measurement | |||
Investments, fair value | 5,194,322 | ||
Level 2 | Fair Value | Real estate funds | |||
Fair Value Measurement | |||
Investments, fair value | 9,973,655 | ||
Recurring basis | Fair Value | Trading securities | |||
Fair Value Measurement | |||
Investments, fair value | 6,776,400 | 5,210,000 | |
Recurring basis | Level 1 | Fair Value | Trading securities | |||
Fair Value Measurement | |||
Investments, fair value | 6,776,400 | 5,210,000 | |
Nonrecurring basis | Fair Value | |||
Fair Value Measurement | |||
Assets measured at fair value on a non-recurring basis | ¥ 0 | ¥ 0 | ¥ 0 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Revenues by type of service | ||||
Total related party revenues | $ 103,144,272 | ¥ 716,130,680 | ¥ 336,254,013 | ¥ 34,558,013 |
Total third-party revenues | 59,814,987 | 415,295,453 | 266,182,435 | 204,497,122 |
Total revenues | 162,959,259 | 1,131,426,133 | 602,436,448 | 239,055,135 |
One-time commissions | ||||
Revenues by type of service | ||||
Total related party revenues | 61,187,382 | 424,823,991 | 167,913,206 | 22,046,325 |
Total third-party revenues | 30,310,984 | 210,449,160 | 172,736,785 | 191,478,574 |
Total revenues | 91,498,366 | 635,273,151 | 340,649,991 | 213,524,899 |
Recurring management fee | ||||
Revenues by type of service | ||||
Total related party revenues | 37,661,020 | 261,480,460 | 144,171,383 | 12,511,688 |
Total third-party revenues | 1,201,761 | |||
Total revenues | 37,661,020 | 261,480,460 | 144,171,383 | 13,713,449 |
Recurring service fees | ||||
Revenues by type of service | ||||
Total related party revenues | 1,845,079 | 12,810,384 | 24,169,424 | |
Total third-party revenues | 15,954,499 | 110,772,087 | 93,445,650 | 11,816,787 |
Total revenues | 17,799,578 | 123,582,471 | ¥ 117,615,074 | ¥ 11,816,787 |
Other Service Fee | ||||
Revenues by type of service | ||||
Total related party revenues | 2,450,791 | 17,015,845 | ||
Total third-party revenues | 13,549,504 | 94,074,206 | ||
Total revenues | $ 16,000,295 | ¥ 111,090,051 |
Related Party Transactions - Re
Related Party Transactions - Revenue by party (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Related Party Transaction | ||||
Related party revenues | $ 103,144,272 | ¥ 716,130,680 | ¥ 336,254,013 | ¥ 34,558,013 |
One-time commissions | ||||
Related Party Transaction | ||||
Related party revenues | 61,187,382 | 424,823,991 | 167,913,206 | 22,046,325 |
One-time commissions | Hehui | ||||
Related Party Transaction | ||||
Related party revenues | 201,948 | 1,402,126 | 8,440,657 | |
One-time commissions | Investees of Affiliates of Juzhou | ||||
Related Party Transaction | ||||
Related party revenues | 3,162,494 | 21,957,199 | 31,086,187 | 1,282,552 |
One-time commissions | Investees of Juzhou | ||||
Related Party Transaction | ||||
Related party revenues | 30,358,808 | 210,781,198 | 92,290,744 | 12,323,116 |
One-time commissions | Investees of Jupeng | ||||
Related Party Transaction | ||||
Related party revenues | 9,598,572 | 66,642,882 | 5,403,559 | |
One-time commissions | Investees of Mingdu | ||||
Related Party Transaction | ||||
Related party revenues | 348,530 | |||
One-time commissions | Investees of Yidezeng | ||||
Related Party Transaction | ||||
Related party revenues | 648,372 | 4,501,647 | 17,412 | |
One-time commissions | Investees of Yidezhen | ||||
Related Party Transaction | ||||
Related party revenues | 16,964,690 | 117,785,843 | 8,104,024 | |
One-time commissions | Investees of Yiju | ||||
Related Party Transaction | ||||
Related party revenues | 30,662,750 | |||
One-time commissions | Investees of Jupai Asset Management Inc | ||||
Related Party Transaction | ||||
Related party revenues | 166,175 | 1,153,752 | ||
One-time commissions | Investees of SINA | ||||
Related Party Transaction | ||||
Related party revenues | 86,323 | 599,344 | ||
Recurring management fee | ||||
Related Party Transaction | ||||
Related party revenues | 37,661,020 | 261,480,460 | 144,171,383 | 12,511,688 |
Recurring management fee | Investees of Juzhou | ||||
Related Party Transaction | ||||
Related party revenues | 25,862,680 | 179,564,586 | 99,398,722 | ¥ 12,511,688 |
Recurring management fee | Investees of Jupeng | ||||
Related Party Transaction | ||||
Related party revenues | 3,938,349 | 27,343,957 | 325,418 | |
Recurring management fee | Investees of Mingdu | ||||
Related Party Transaction | ||||
Related party revenues | 99,773 | 692,726 | 321,905 | |
Recurring management fee | Investees of Yidezeng | ||||
Related Party Transaction | ||||
Related party revenues | 147,692 | 1,025,427 | 937,652 | |
Recurring management fee | Investees of Yidezhen | ||||
Related Party Transaction | ||||
Related party revenues | 6,804,549 | 47,243,982 | 9,303,710 | |
Recurring management fee | Investees of Yidexin | ||||
Related Party Transaction | ||||
Related party revenues | 181,036 | 1,256,930 | 410,294 | |
Recurring management fee | Investees of Yidezhao | ||||
Related Party Transaction | ||||
Related party revenues | 5,200,452 | |||
Recurring management fee | Investees of Yiju | ||||
Related Party Transaction | ||||
Related party revenues | 626,941 | 4,352,852 | 28,273,230 | |
Recurring service fee | ||||
Related Party Transaction | ||||
Related party revenues | 1,845,079 | 12,810,384 | 24,169,424 | |
Recurring service fee | Hehui | ||||
Related Party Transaction | ||||
Related party revenues | 456,883 | 3,172,140 | ||
Recurring service fee | Investees of Affiliates of Juzhou | ||||
Related Party Transaction | ||||
Related party revenues | 657,340 | 4,563,907 | 23,723,991 | |
Recurring service fee | Investees of SINA | ||||
Related Party Transaction | ||||
Related party revenues | 379,112 | 2,632,178 | ||
Recurring service fee | Investees of affiliates of Yidezeng | ||||
Related Party Transaction | ||||
Related party revenues | 215,867 | 1,498,763 | ¥ 445,433 | |
Recurring service fee | Investees affiliates of Yidezhen | ||||
Related Party Transaction | ||||
Related party revenues | 135,877 | 943,396 | ||
Other Service Fee | ||||
Related Party Transaction | ||||
Related party revenues | 2,450,791 | 17,015,845 | ||
Other Service Fee | Investees of Affiliates of Juzhou | ||||
Related Party Transaction | ||||
Related party revenues | 1,770,889 | 12,295,283 | ||
Other Service Fee | Investees of Jupeng | ||||
Related Party Transaction | ||||
Related party revenues | $ 679,902 | ¥ 4,720,562 |
Related Party Transactions - Am
Related Party Transactions - Amounts due by party (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Related Party Transaction | |||
Amounts due from related parties | $ 19,236,711 | ¥ 133,560,483 | ¥ 11,923,607 |
Investees of Juzhou | |||
Related Party Transaction | |||
Amounts due from related parties | 10,251,387 | 71,175,380 | 23,332 |
Investees of Affiliates of Juzhou | |||
Related Party Transaction | |||
Amounts due from related parties | 3,920,327 | 27,218,833 | 2,535,114 |
Investees of Jupeng | |||
Related Party Transaction | |||
Amounts due from related parties | 2,587,315 | 17,963,726 | 1,353,799 |
Investees of Yidexin | |||
Related Party Transaction | |||
Amounts due from related parties | 428,331 | ||
Investees of Yidezhen | |||
Related Party Transaction | |||
Amounts due from related parties | 996,209 | 6,916,677 | 5,903,039 |
Investees of Yidezeng | |||
Related Party Transaction | |||
Amounts due from related parties | 56,320 | 391,028 | 999,995 |
Investees of Yidezhao | |||
Related Party Transaction | |||
Amounts due from related parties | ¥ 679,997 | ||
Investee of Yubo | |||
Related Party Transaction | |||
Amounts due from related parties | 171,993 | 1,194,149 | |
Investees of Yiju | |||
Related Party Transaction | |||
Amounts due from related parties | 432,090 | 3,000,000 | |
Investees of Jupai Asset Management Inc | |||
Related Party Transaction | |||
Amounts due from related parties | 310,879 | 2,158,430 | |
Non-controlling interests shareholder | Loans to related party | |||
Related Party Transaction | |||
Amounts due from related parties | $ 510,191 | ¥ 3,542,260 |
Related Party Transactions - De
Related Party Transactions - Deferred revenue and amounts due to party (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) |
Related Party Transaction | ||||
Deferred revenue from related parties including prepaid carried interest | $ 28,382,236 | ¥ 197,057,867 | ¥ 114,460,661 | |
Additional prepaid carried interest | $ | 0 | $ 0 | ||
Amounts due to related party | 881,273 | 6,118,678 | 34,286,208 | |
Investees of Affiliates of Juzhou | ||||
Related Party Transaction | ||||
Deferred revenue from related parties including prepaid carried interest | 1,277,397 | 8,868,968 | 8,516,655 | |
Investees of Juzhou | ||||
Related Party Transaction | ||||
Deferred revenue from related parties including prepaid carried interest | 13,173,226 | 91,461,706 | 92,163,951 | |
Investees of Jupeng | ||||
Related Party Transaction | ||||
Deferred revenue from related parties including prepaid carried interest | 11,864,865 | 82,377,760 | 6,678,187 | |
Sina Hong Kong Limited | ||||
Related Party Transaction | ||||
Amounts due to related party | ¥ | 34,286,208 | |||
Investees of Yidezhen | ||||
Related Party Transaction | ||||
Deferred revenue from related parties including prepaid carried interest | 1,811,327 | 12,576,042 | 6,929,223 | |
Amounts due to related party | 87,412 | 606,900 | ||
Non-controlling interests shareholder | ||||
Related Party Transaction | ||||
Amounts due to related party | 793,861 | 5,511,778 | ||
Investees of Yidezeng | ||||
Related Party Transaction | ||||
Deferred revenue from related parties including prepaid carried interest | 183,351 | 1,273,008 | ¥ 172,645 | |
Hehui | ||||
Related Party Transaction | ||||
Deferred revenue from related parties including prepaid carried interest | $ 72,070 | ¥ 500,383 |
Commitments - Future minimum le
Commitments - Future minimum lease payments (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Future minimum lease payments | |||
2,017 | ¥ 51,258,404 | ||
2,018 | 31,910,135 | ||
2,019 | 10,121,586 | ||
2,020 | 718,299 | ||
Total | 94,008,424 | ||
Rental expenses | ¥ 65,303,048 | ¥ 31,927,239 | ¥ 19,270,251 |
Commitments - Investment commit
Commitments - Investment commitments (Details) | Dec. 31, 2016CNY (¥) |
Investment commitments | |
Capital commitment | ¥ 59,895,000 |
Guojinwenying | |
Investment commitments | |
Capital commitment | 9,000,000 |
Shanghai HuijuAsset Management Co., Ltd. | |
Investment commitments | |
Capital commitment | 3,750,000 |
Shanghai Jingzhou Asset Management Co., Ltd. | |
Investment commitments | |
Capital commitment | 1,800,000 |
Xiamen Zipai Asset Management Co., Ltd. | |
Investment commitments | |
Capital commitment | 9,180,000 |
Shanghai Jufu Assets Management Co., Ltd. | |
Investment commitments | |
Capital commitment | 3,675,000 |
Shanghai Zhoushi Asset Management Co., Ltd. | |
Investment commitments | |
Capital commitment | 1,960,000 |
Shanghai Juzhi Asset Management Co., Ltd. | |
Investment commitments | |
Capital commitment | 2,500,000 |
Beijing Donglinjusheng Investment Management Co., Ltd. | |
Investment commitments | |
Capital commitment | 2,100,000 |
Shanghai Qihu Financial Information Co., Ltd. | |
Investment commitments | |
Capital commitment | 10,500,000 |
Hehui | |
Investment commitments | |
Capital commitment | 1,470,000 |
Shanghai Xinhao Investment Management Co., Ltd | |
Investment commitments | |
Capital commitment | 4,900,000 |
Shanghai Qianchang Investment Management Co., Ltd | |
Investment commitments | |
Capital commitment | 4,700,000 |
Shanghai Zhouzhi Investment Management Co., Ltd. | |
Investment commitments | |
Capital commitment | 4,000,000 |
Others | |
Investment commitments | |
Capital commitment | ¥ 360,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Feb. 28, 2017USD ($)$ / sharesshares |
Subsequent Event | |
Cash dividend declared, per ordinary share | $ 0.083 |
Number of ordinary shares for each ADS | shares | 6 |
Cash dividend declared, per ADS | $ 0.5 |
Dividend payable | $ | $ 16 |
Additional Financial Informat84
Additional Financial Information of Parent Company - Schedule I Balance sheet (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) |
Assets | ||||||
Cash and cash equivalents | $ 161,769,575 | ¥ 1,123,166,156 | $ 114,575,423 | ¥ 795,497,163 | ¥ 193,098,712 | ¥ 32,577,822 |
Other receivables | 11,384,390 | 79,041,821 | 33,539,256 | |||
Other current assets | 1,807,747 | 12,551,186 | 6,659,354 | |||
Total current assets | 213,370,728 | 1,481,432,963 | 993,964,105 | |||
Investment in subsidiaries and VIE | 12,362,155 | 85,830,444 | 34,732,868 | |||
Total Assets | 306,503,589 | 2,128,054,419 | 1,569,402,314 | |||
LIABILITY | ||||||
Other current liabilities | 1,497,481 | 10,397,008 | 4,742,957 | |||
Amounts due to related parties-non-current | 34,286,208 | |||||
Total Liabilities | 83,506,218 | 579,783,669 | 465,133,224 | |||
Ordinary Shares ($0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 179,586,759 and 193,720,706 shares issued and outstanding, as of December 31, 2015 and 2016, respectively) | 87,307 | 606,170 | 560,080 | |||
Additional paid-in capital | 152,658,220 | 1,059,906,023 | 896,815,686 | |||
Retained earnings | 52,271,658 | 362,922,123 | 155,338,255 | |||
Accumulated other comprehensive income | 11,115,016 | 77,171,557 | 34,354,063 | |||
Total Jupai shareholders' equity | 216,132,201 | 1,500,605,873 | 1,087,068,084 | |||
Total Liabilities and Total Equity | 306,503,589 | 2,128,054,419 | 1,569,402,314 | |||
Parent Company | ||||||
Assets | ||||||
Cash and cash equivalents | 37,823,656 | 262,609,642 | $ 25,860,450 | 179,549,103 | ¥ 16,543,341 | |
Other receivables | 2,997,407 | 20,811,000 | ||||
Other current assets | 172,351 | 1,196,633 | 1,312,357 | |||
Total current assets | 40,993,414 | 284,617,275 | 180,861,460 | |||
Investment in subsidiaries and VIE | 147,175,888 | 1,021,842,196 | 758,755,916 | |||
Loan to subsidiaries | 29,925,642 | 207,773,729 | 194,493,223 | |||
Total Assets | 218,094,944 | 1,514,233,200 | 1,134,110,599 | |||
LIABILITY | ||||||
Other current liabilities | 92,653 | 643,291 | 602,184 | |||
Amounts due to related parties-non-current | 1,870,090 | 12,984,036 | 46,440,331 | |||
Total Liabilities | 1,962,743 | 13,627,327 | 47,042,515 | |||
Ordinary Shares ($0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 179,586,759 and 193,720,706 shares issued and outstanding, as of December 31, 2015 and 2016, respectively) | 87,307 | 606,170 | 560,080 | |||
Additional paid-in capital | 152,658,220 | 1,059,906,023 | 896,815,686 | |||
Retained earnings | 52,271,658 | 362,922,123 | 155,338,255 | |||
Accumulated other comprehensive income | 11,115,016 | 77,171,557 | 34,354,063 | |||
Total Jupai shareholders' equity | 216,132,201 | 1,500,605,873 | 1,087,068,084 | |||
Total Liabilities and Total Equity | $ 218,094,944 | ¥ 1,514,233,200 | ¥ 1,134,110,599 |
Additional Financial Informat85
Additional Financial Information of Parent Company Schedule I (Details) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Shareholders' Equity: | ||
Ordinary shares, par value ( in dollars per share) | $ 0.0005 | $ 0.0005 |
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | 193,720,706 | 179,586,759 |
Ordinary shares, shares outstanding | 193,720,706 | 179,586,759 |
Parent Company | ||
Shareholders' Equity: | ||
Ordinary shares, par value ( in dollars per share) | $ 0.0005 | $ 0.0005 |
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | 193,720,706 | 179,586,759 |
Ordinary shares, shares outstanding | 193,720,706 | 179,586,759 |
Additional Financial Informat86
Additional Financial Information of Parent Company - Schedule I Ops and Comprehensive Income (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Condensed Statements of Operations and Comprehensive Income | ||||
Cost of revenues | $ (68,707,318) | ¥ (477,034,912) | ¥ (235,943,955) | ¥ (65,094,587) |
Selling expenses | (34,177,946) | (237,297,482) | (87,091,525) | (35,233,118) |
General and administrative expenses | (22,462,750) | (155,958,876) | (91,777,836) | (42,813,000) |
Interest income | 534,771 | 3,712,918 | 2,794,977 | 1,143,937 |
Interest expense | (91,382) | |||
Income before taxes and equity in affiliates | 44,810,349 | 311,118,245 | 230,177,098 | 123,195,110 |
Income from equity in subsidiaries and VIEs | 221,708 | 1,539,316 | 4,333,847 | 476,516 |
Net income | 33,133,435 | 230,045,429 | 167,264,455 | 89,360,895 |
Other comprehensive income | 6,341,192 | 44,026,895 | 34,333,103 | 140,577 |
Comprehensive income attributable to Jupai shareholders | 36,065,299 | 250,401,362 | 187,750,441 | 87,926,585 |
Deemed dividend on Series B convertible redeemable preferred shares | (46,198,890) | |||
Comprehensive income attributable to ordinary shareholders | 36,065,299 | 250,401,362 | 187,750,441 | 41,727,695 |
Adjustments to additional paid in capital related to investments in VIEs | 38,523,878 | |||
Parent Company | ||||
Condensed Statements of Operations and Comprehensive Income | ||||
Cost of revenues | (611,625) | (4,246,514) | (3,477,672) | (1,092,849) |
Selling expenses | (18,664) | (129,584) | (12,808) | (4,648) |
General and administrative expenses | (3,479,900) | (24,160,949) | (15,027,623) | (6,332,579) |
Other income / loss | 80,873 | 561,503 | ||
Interest income | 931 | 6,465 | ||
Interest expense | (916) | |||
Income before taxes and equity in affiliates | (4,028,385) | (27,969,079) | (18,518,103) | (7,430,992) |
Income from equity in subsidiaries and VIEs | 33,926,682 | 235,552,947 | 171,994,609 | 95,217,000 |
Other comprehensive income | 6,167,002 | 42,817,494 | 34,273,935 | 140,577 |
Comprehensive income attributable to Jupai shareholders | 36,065,299 | 250,401,362 | 187,750,441 | 87,926,585 |
Deemed dividend on Series B convertible redeemable preferred shares | (46,198,890) | |||
Comprehensive income attributable to ordinary shareholders | $ 36,065,299 | ¥ 250,401,362 | ¥ 187,750,441 | ¥ 41,727,695 |
Additional Financial Informat87
Additional Financial Information of Parent Company - Schedule I Cash flow (Details) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2016CNY (¥) | Mar. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Cash flows from operating activities: | ||||||
Net income | $ 29,898,297 | ¥ 207,583,868 | ¥ 153,476,506 | ¥ 87,786,008 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Share based compensation | 3,085,654 | 21,423,694 | 15,895,439 | 3,046,402 | ||
Income from equity in subsidiaries and VIE | (221,708) | (1,539,316) | (4,333,847) | (476,516) | ||
Changes in operating assets and liabilities: | ||||||
Other current assets | 457,147 | 3,173,970 | (349,015) | (3,003,483) | ||
Other current liabilities | (2,584,250) | (17,942,451) | (8,591,012) | 8,465,690 | ||
Net cash used in operating activities | 27,115,620 | 188,263,729 | 369,053,507 | 149,448,775 | ||
Cash flows from investing activities: | ||||||
Loan to subsidiaries | (474,970) | (3,297,719) | ||||
Invest in acquiree | ¥ (5,081,739) | |||||
Net cash (used in)/provided by investing activities | 270,502 | 1,878,091 | (75,307,251) | (36,776,769) | ||
Cash flows from financing activities: | ||||||
Proceeds from issuance of preferred shares | 47,880,833 | |||||
Exercise of options | 447,290 | 3,105,533 | ||||
Proceeds from IPO | 305,559,135 | |||||
Payment of IPO cost | (44,801,147) | (1,649,791) | ||||
Payments of private placement cost | (1,451,637) | (10,078,713) | ||||
Subscription receivable | 304,845 | |||||
Net cash provided by financing activities | 16,477,953 | 114,406,429 | 293,994,196 | 47,730,387 | ||
Effect of exchange rate changes | 3,330,077 | 23,120,744 | 14,657,999 | 118,497 | ||
Net increase in cash and cash equivalents | 47,194,152 | 327,668,993 | 602,398,451 | 160,520,890 | ||
Cash and cash equivalents-beginning of the year | 114,575,423 | 795,497,163 | 193,098,712 | 32,577,822 | ||
Cash and cash equivalents-end of the year | 161,769,575 | 1,123,166,156 | 795,497,163 | 193,098,712 | ||
Non-cash investing and financing activities: | ||||||
Acquisition of Scepter through share settlement | (344,867,857) | |||||
Conversion of Series A and B convertible redeemable preferred shares to ordinary shares | 234,259,757 | |||||
Series B convertible redeemable preferred shares | ||||||
Non-cash investing and financing activities: | ||||||
Series B convertible redeemable preferred shares issued by re-designation of ordinary shares | 178,337,893 | |||||
Non-linear | ||||||
Cash flows from investing activities: | ||||||
Invest in acquiree | ¥ (896,162) | |||||
Parent Company | ||||||
Cash flows from operating activities: | ||||||
Net income | 29,898,297 | 207,583,868 | 153,476,506 | 87,786,008 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Share based compensation | 3,085,654 | 21,423,694 | 15,895,439 | 3,046,402 | ||
Income from equity in subsidiaries and VIE | (33,926,682) | (235,552,947) | (171,994,609) | (95,217,000) | ||
Changes in operating assets and liabilities: | ||||||
Prepayment | (2,997,407) | (20,811,000) | ||||
Other current assets | 16,668 | 115,726 | (781,124) | |||
Other current liabilities | 5,920 | 41,108 | (3,922,057) | 4,364,690 | ||
Net cash used in operating activities | (3,917,550) | (27,199,551) | (7,325,845) | (19,900) | ||
Cash flows from investing activities: | ||||||
Loan to subsidiaries | (143,145,444) | (31,139,497) | ||||
Net cash (used in)/provided by investing activities | (2,284,551) | (15,861,639) | (143,145,444) | (31,139,497) | ||
Cash flows from financing activities: | ||||||
Proceeds from issuance of preferred shares | 47,880,833 | |||||
Proceeds from private placement | 16,476,985 | 114,399,705 | 34,286,208 | |||
Exercise of options | 447,290 | 3,105,533 | ||||
Proceeds from IPO | 305,559,135 | |||||
Payment of IPO cost | (35,370,666) | (477,865) | ||||
Payments of private placement cost | (1,451,637) | (10,078,713) | ||||
Subscription receivable | 304,845 | |||||
Net cash provided by financing activities | 15,472,638 | 107,426,525 | 304,474,677 | 47,707,813 | ||
Effect of exchange rate changes | 2,692,669 | 18,695,204 | 9,002,374 | (5,075) | ||
Net increase in cash and cash equivalents | 11,963,206 | 83,060,539 | 163,005,762 | 16,543,341 | ||
Cash and cash equivalents-beginning of the year | 25,860,450 | 179,549,103 | 16,543,341 | |||
Cash and cash equivalents-end of the year | 37,823,656 | 262,609,642 | 179,549,103 | 16,543,341 | ||
Non-cash investing and financing activities: | ||||||
Series B convertible redeemable preferred shares issued by re-designation of ordinary shares | ¥ 178,337,893 | |||||
Acquisition of Scepter through share settlement | (344,867,857) | |||||
Conversion of Series A and B convertible redeemable preferred shares to ordinary shares | ¥ 234,259,758 | |||||
Parent Company | UP Capital | ||||||
Cash flows from investing activities: | ||||||
Invest in acquiree | (1,684,168) | (11,693,178) | ||||
Parent Company | Non-linear | ||||||
Cash flows from investing activities: | ||||||
Invest in acquiree | $ (600,383) | ¥ (4,168,461) |