Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Jupai Holdings Ltd |
Entity Common Stock, Shares Outstanding | 201,737,272 |
Entity Well-known Seasoned Issuer | No |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Ex Transition Period | true |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001616291 |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 102,158,306 | ¥ 711,205,698 | ¥ 1,298,565,042 |
Restricted cash | 158,005 | 1,100,000 | 4,000,000 |
Short-term investments | 4,723,612 | ||
Accounts receivable (net of allowance for doubtful accounts of 19,654,430 and RMB26,102,138 as of December 31, 2018 and 2019, respectively) | 39,633,035 | ||
Other receivables (net of allowance for doubtful accounts of RMB40,782 and RMB2,080,597 as of December 31, 2018 and 2019, respectively) | 2,029,006 | 14,125,535 | 20,493,145 |
Amounts due from related parties (net of allowance for doubtful accounts of RMB43,516,516 and RMB96,307,907 as of December 31, 2018 and 2019, respectively) | 13,673,619 | 95,193,003 | 199,331,694 |
Other current assets | 715,985 | 4,984,541 | 15,320,791 |
Total current assets | 118,734,921 | 826,608,777 | 1,582,067,319 |
Long-term investments | 32,886,610 | 228,950,000 | 58,950,000 |
Intangible assets, net | 5,494,338 | 38,250,479 | 58,124,608 |
Goodwill | 297,031 | ||
Amounts due from related parties - non-current | 32,910,705 | 229,117,743 | 48,626,353 |
Investment in affiliates | 15,447,298 | 107,541,000 | 67,262,431 |
Property and equipment, net | 3,998,213 | 27,834,760 | 36,267,042 |
Other non-current assets | 2,569,166 | 17,886,020 | 27,914,021 |
Right-of-use assets | 9,904,062 | 68,950,101 | |
Deferred tax assets | 661,907 | 4,608,063 | 100,985,228 |
Total Assets | 222,607,220 | 1,549,746,943 | 1,980,494,033 |
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 RMB37,608,320 and RMB28,055,363 as of December 31, 2018 and 2019, respectively) | 8,376,866 | 58,318,063 | 116,653,658 |
Income tax payable (including income tax payable of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB34,282,285 and RMB19,815,543 as of December 31, 2018 and 2019, respectively) | 11,893,506 | 82,800,208 | 227,537,993 |
Other tax payable (including other tax payable of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB12,123,866 and RMB-16,501,066 as of December 31, 2018 and 2019, respectively) | 99,842 | 695,081 | 43,009,523 |
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 RMB11,082,834 and RMB10,963,967 as of December 31,2018 and 2019, respectively) | 2,792,333 | 19,439,664 | 31,105,111 |
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 RMB100,033,490 and RMB28,056,641 as of December 31,2018 and 2019, respectively) | 6,040,673 | 42,053,959 | 111,720,785 |
Deferred revenue (including deferred revenue of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB5,406,737 and RMB17,211,666 as of December 31,2018 and 2019, respectively) | 5,124,322 | 35,674,503 | 18,949,097 |
Other current liabilities (including other current liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB12,882,315 and RMB13,940,969 as of December 31, 2018 and 2019, respectively) | 11,232,881 | 78,201,072 | 39,929,945 |
Total current liabilities | 45,560,423 | 317,182,550 | 588,906,112 |
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 RMB20,766,792 and RMB4,774,671 as of December 31, 2018 and 2019, respectively) | 706,404 | 4,917,845 | 22,096,306 |
Deferred revenue - non-current (including deferred revenue of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB1,849,843 and RMB311,651 as of December 31, 2018 and 2019, respectively) | 44,766 | 311,651 | 2,144,593 |
Operating Lease Liabilities - non-current (including operating lease liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil and RMB642,309 as of December 31, 2018 and 2019, respectively | 4,096,468 | 28,518,789 | |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil as of December 31, 2018 and 2019, respectively) | 198,187 | ||
Total Liabilities | 50,408,061 | 350,930,835 | 613,345,198 |
Commitments and Contingencies | |||
Shareholders' Equity: | |||
Ordinary Shares (USD0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 201,479,446 and 201,737,272 shares issued and outstanding, as of December 31, 2018 and 2019, respectively) | 90,867 | 632,601 | 631,715 |
Additional paid-in capital | 165,237,770 | 1,150,352,309 | 1,138,107,676 |
Retained earnings | (2,523,418) | (17,567,529) | 147,118,546 |
Accumulated other comprehensive income | 7,776,965 | 54,141,670 | 53,153,406 |
Total Jupai shareholders' equity | 170,582,184 | 1,187,559,051 | 1,339,011,343 |
Noncontrolling interests | 1,616,975 | 11,257,057 | 28,137,492 |
Total Equity | 172,199,159 | 1,198,816,108 | 1,367,148,835 |
Total Liabilities and Equity | $ 222,607,220 | ¥ 1,549,746,943 | ¥ 1,980,494,033 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares |
Accounts receivable, allowance for doubtful accounts | ¥ 26,102,138 | ¥ 19,654,430 |
Other receivables, allowance for doubtful accounts | 2,080,597 | 40,782 |
Amounts due from related parties, allowance for doubtful accounts | 96,307,907 | 43,516,516 |
Accrued payroll and welfare expenses | 58,318,063 | 116,653,658 |
Income tax payable | 82,800,208 | 227,537,993 |
Other tax payable | 695,081 | 43,009,523 |
Amounts due to related parties-current | 19,439,664 | 31,105,111 |
Deferred revenue from related parties | 42,053,959 | 111,720,785 |
Deferred revenue | 35,674,503 | 18,949,097 |
Other current liabilities | 78,201,072 | 39,929,945 |
Deferred revenue - non-current from related parties | 4,917,845 | 22,096,306 |
Deferred revenue - non-current | 311,651 | 2,144,593 |
Operating Lease Liability | ¥ 28,518,789 | |
Deferred tax liabilities | ¥ 198,187 | |
Shareholders' Equity: | ||
Ordinary shares, shares authorized | shares | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | shares | 201,737,272 | 201,479,446 |
Ordinary shares, shares outstanding | shares | 201,737,272 | 201,479,446 |
Consolidated VIE and VIE's subsidiaries | ||
Amounts due from related parties, allowance for doubtful accounts | ¥ 60,490,862 | ¥ 33,684,333 |
Accrued payroll and welfare expenses | 28,055,363 | 37,608,320 |
Income tax payable | 19,815,543 | 34,282,285 |
Other tax payable | (16,501,066) | 12,123,866 |
Amounts due to related parties-current | 10,963,967 | 11,082,834 |
Deferred revenue from related parties | 28,056,641 | 100,033,490 |
Deferred revenue | 17,211,666 | 5,406,737 |
Other current liabilities | 13,940,969 | 12,882,315 |
Deferred revenue - non-current from related parties | 4,774,671 | 20,766,792 |
Deferred revenue - non-current | 311,651 | 1,849,843 |
Operating Lease Liability | 642,309 | 0 |
Deferred tax liabilities | ¥ 0 | ¥ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Revenues | ||||
Revenues | $ 113,585,589 | ¥ 790,760,152 | ¥ 1,326,067,405 | ¥ 1,712,703,256 |
Business taxes and related surcharges | (691,336) | (4,812,940) | (4,323,742) | (6,541,634) |
Net revenues | 112,894,253 | 785,947,212 | 1,321,743,663 | 1,706,161,622 |
Operating cost and expenses: | ||||
Cost of revenues | (69,198,493) | (481,746,067) | (684,558,659) | (737,507,904) |
Selling expenses | (29,701,716) | (206,777,405) | (303,170,575) | (282,171,751) |
General and administrative expenses | (38,140,638) | (265,527,496) | (274,782,664) | (204,052,576) |
Impairment loss of goodwill | ¥ | 0 | (267,917,575) | 0 | |
Other operating income | 4,514,609 | 31,429,802 | 48,742,897 | 41,138,443 |
Total operating cost and expenses | (132,526,238) | (922,621,166) | (1,481,686,576) | (1,182,593,788) |
Income (loss) from operations | (19,631,985) | (136,673,954) | (159,942,913) | 523,567,834 |
Interest income | 881,467 | 6,136,600 | 3,990,096 | 11,385,895 |
Investment income (loss) | 1,813,775 | 12,627,142 | (292,384) | 10,012,216 |
Gain from deconsolidation of a subsidiary | ¥ | 561,528 | |||
Exchange (loss) gain | 489,673 | 3,409,000 | 4,227,896 | (2,040,641) |
Income (loss) before taxes and gain from equity in affiliates | (16,447,070) | (114,501,212) | (151,455,777) | 542,925,304 |
Income tax expense | (7,605,021) | (52,944,639) | (129,855,367) | (122,998,509) |
Gain (loss) from equity in affiliates | (720,369) | (5,015,063) | (113,486,155) | 2,579,447 |
Net income (loss) | (24,772,460) | (172,460,914) | (394,797,299) | 422,506,242 |
Net (income) loss attributable to noncontrolling interests | 1,116,786 | 7,774,839 | 7,053,281 | (13,014,063) |
Net income (loss) attributable to ordinary shareholders | $ (23,655,674) | ¥ (164,686,075) | ¥ (387,744,018) | ¥ 409,492,179 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | (per share) | $ (0.12) | ¥ (0.82) | ¥ (1.93) | ¥ 2.09 |
Diluted (in dollars per share) | (per share) | $ (0.12) | ¥ (0.82) | ¥ (1.93) | ¥ 1.99 |
Weighted average number of shares used in computation: | ||||
Basic (in shares) | shares | 201,695,899 | 201,695,899 | 200,480,910 | 195,467,414 |
Diluted (in shares) | shares | 201,695,899 | 201,695,899 | 200,480,910 | 205,671,904 |
Third party | ||||
Revenues | ||||
Revenues | $ 55,714,076 | ¥ 387,870,253 | ¥ 335,246,612 | ¥ 479,917,547 |
Related party | ||||
Revenues | ||||
Revenues | $ 57,871,513 | ¥ 402,889,899 | ¥ 990,820,793 | ¥ 1,232,785,709 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net income (loss) | $ (24,772,460) | ¥ (172,460,914) | ¥ (394,797,299) | ¥ 422,506,242 |
Other comprehensive (loss) income, net of tax of nil: | ||||
Change in cumulative foreign currency translation adjustment | (466,245) | (3,245,903) | 12,501,586 | (36,377,776) |
Other comprehensive (loss) income | (466,245) | (3,245,903) | 12,501,586 | (36,377,776) |
Comprehensive income (loss) | (25,238,705) | (175,706,817) | (382,295,713) | 386,128,466 |
Less: comprehensive income (loss) attributable to noncontrolling interest | (1,113,029) | (7,748,689) | (6,934,658) | 13,037,401 |
Comprehensive income (loss) attributable to ordinary shareholders | $ (24,125,676) | ¥ (167,958,128) | ¥ (375,361,055) | ¥ 373,091,065 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity | Ordinary sharesUSD ($)shares | Ordinary sharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Retained earningsCNY (¥) | Accumulated other comprehensive incomeCNY (¥) | Total Jupai shareholders' equityCNY (¥) | Noncontrolling interestsCNY (¥) | USD ($) | CNY (¥) |
Balance at Dec. 31, 2016 | ¥ 606,170 | ¥ 1,059,906,023 | ¥ 362,922,123 | ¥ 77,171,557 | ¥ 1,500,605,873 | ¥ 47,664,877 | ¥ 1,548,270,750 | ||
Balance (in shares) at Dec. 31, 2016 | shares | 193,720,706 | 193,720,706 | |||||||
Net income (loss) | 409,492,179 | 409,492,179 | 13,014,063 | 422,506,242 | |||||
Share-based compensation | 30,455,939 | 30,455,939 | 30,455,939 | ||||||
Option exercised | ¥ 11,413 | 11,667,134 | 11,678,547 | 11,678,547 | |||||
Option exercised (in shares) | shares | 3,427,569 | 3,427,569 | |||||||
Restricted shares vested | ¥ 3,370 | (3,370) | |||||||
Restricted shares vested (in shares) | shares | 995,464 | 995,464 | |||||||
Dividend distribution | (111,196,228) | (111,196,228) | (5,992,000) | (117,188,228) | |||||
Purchase of subsidiary shares from noncontrolling interests | 14,716,560 | 14,716,560 | (20,194,033) | (5,477,473) | |||||
Foreign currency translation adjustment | (36,401,114) | (36,401,114) | 23,338 | (36,377,776) | |||||
Balance at Dec. 31, 2017 | ¥ 620,953 | 1,116,742,286 | 661,218,074 | 40,770,443 | 1,819,351,756 | 34,516,245 | 1,853,868,001 | ||
Balance (in shares) at Dec. 31, 2017 | shares | 198,143,739 | 198,143,739 | |||||||
Net income (loss) | (387,744,018) | (387,744,018) | (7,053,281) | (394,797,299) | |||||
Share-based compensation | 18,108,942 | 18,108,942 | 18,108,942 | ||||||
Option exercised | ¥ 2,816 | 3,264,394 | 3,267,210 | 3,267,210 | |||||
Option exercised (in shares) | shares | 886,362 | 886,362 | |||||||
Restricted shares vested | ¥ 7,946 | (7,946) | |||||||
Restricted shares vested (in shares) | shares | 2,449,345 | 2,449,345 | |||||||
Dividend distribution | (126,355,510) | (126,355,510) | (126,355,510) | ||||||
Capital contribution by noncontrolling interest shareholder | $ 0 | ¥ 0 | 0 | 0 | 0 | 0 | 1,858,779 | 1,858,779 | |
Deconsolidation of a subsidiary | (1,302,874) | (1,302,874) | |||||||
Foreign currency translation adjustment | 12,382,963 | 12,382,963 | 118,623 | 12,501,586 | |||||
Balance at Dec. 31, 2018 | ¥ 631,715 | 1,138,107,676 | 147,118,546 | 53,153,406 | 1,339,011,343 | 28,137,492 | 1,367,148,835 | ||
Balance (in shares) at Dec. 31, 2018 | shares | 201,479,446 | 201,479,446 | |||||||
Net income (loss) | (164,686,075) | (164,686,075) | (7,774,839) | $ (24,772,460) | (172,460,914) | ||||
Share-based compensation | 9,583,596 | 9,583,596 | 9,583,596 | ||||||
Option exercised | ¥ 32 | 29,604 | 29,636 | 29,636 | |||||
Option exercised (in shares) | shares | 9,200 | 9,200 | |||||||
Restricted shares vested | ¥ 854 | (854) | |||||||
Restricted shares vested (in shares) | shares | 248,626 | 248,626 | |||||||
Deconsolidation of a subsidiary | $ 0 | ¥ 0 | 2,632,287 | 0 | 4,260,317 | 6,892,604 | (9,131,746) | (2,239,142) | |
Foreign currency translation adjustment | (3,272,053) | (3,272,053) | 26,150 | (3,245,903) | |||||
Balance at Dec. 31, 2019 | ¥ 632,601 | ¥ 1,150,352,309 | ¥ (17,567,529) | ¥ 54,141,670 | ¥ 1,187,559,051 | ¥ 11,257,057 | $ 172,199,159 | ¥ 1,198,816,108 | |
Balance (in shares) at Dec. 31, 2019 | shares | 201,737,272 | 201,737,272 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (24,772,460) | ¥ (172,460,914) | ¥ (394,797,299) | ¥ 422,506,242 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 3,749,295 | 26,101,844 | 36,289,554 | 32,572,171 |
Allowance for doubtful accounts | 8,802,165 | 61,278,914 | 59,214,311 | 3,997,417 |
Impairment loss of goodwill | 0 | 267,917,575 | 0 | |
(Income) loss from equity in affiliates | 720,369 | 5,015,063 | 113,486,155 | (2,579,447) |
Gain from disposal of subsidiaries and investment in affiliates | (1,803,994) | (12,559,048) | (1,051,867) | |
Loss on investment in equity securities | 678,504 | 4,723,612 | 1,500,000 | |
Share-based compensation | 1,376,597 | 9,583,596 | 18,108,942 | 30,455,939 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 4,661,107 | 32,449,697 | (6,713,876) | (1,400,646) |
Other receivables | (427,334) | (2,975,011) | 9,749,600 | 48,869,539 |
Other assets | 2,369,770 | 16,497,858 | (10,359,399) | (16,663,128) |
Short-term investments - trading securities | 5,210,000 | |||
Amounts due from related parties | 7,390,326 | 51,449,973 | 26,800,336 | (104,991,509) |
Accrued payroll and welfare expenses | (8,369,845) | (58,269,184) | (96,064,627) | 110,854,278 |
Income tax payable | (20,790,282) | (144,737,787) | 48,663,004 | 41,092,965 |
Other tax payable | (6,078,089) | (42,314,442) | (15,124,159) | (864,098) |
Deferred revenue | 2,139,169 | 14,892,464 | (3,439,970) | (17,576,440) |
Uncertain tax position | (5,938,816) | |||
Return on investment in affiliates | 1,364,431 | |||
Other current liabilities | (1,665,214) | (11,592,885) | 12,567,773 | 45,400,912 |
Deferred Revenue from related parties | (12,427,881) | (86,520,421) | (100,647,014) | 37,406,237 |
Deferred taxes | 13,815,515 | 96,180,849 | (33,820,672) | (12,188,991) |
Net cash provided by (used in) operating activities | (30,632,282) | (213,255,822) | (67,721,633) | 617,527,056 |
Cash flows from investing activities: | ||||
Purchase of property and equipment and intangible assets | (1,896,609) | (13,203,815) | (9,308,534) | (39,065,784) |
Purchase of held-to-maturity investments | (173,745,612) | |||
Collection of held-to-maturity investments | 3,680,000 | 185,342,000 | ||
Purchase of long-term investments | (28,728,202) | (200,000,000) | (3,000,000) | |
Proceeds of long-term investments | 4,912,523 | 34,200,000 | 4,800,000 | 8,200,000 |
Purchase of available-for-sale investments | (3,000,000) | |||
Proceeds from available-for-sale investments | 3,000,000 | |||
Payment for investment in affiliates | (8,440,317) | (58,759,800) | (215,900,000) | (20,714,800) |
Proceeds from disposal of investment in affiliates | 1,892,146 | 13,172,739 | 218,678,718 | 3,225,000 |
Origination of short-term loan | (3,000,000) | (300,000,000) | ||
Collection of short-term loan | 574,564 | 4,000,000 | 300,000,000 | |
Acquisition of subsidiaries, net of cash payment | (28,728) | (200,000) | ||
Long term prepayment | (1,157,786) | |||
Proceeds from disposal of subsidiary, net of cash disposed | 4,883,672 | 33,999,151 | 218,171 | |
(Payment) collection of advanced payment for acquisition | 125,000 | (125,000) | ||
Loan to related parties | (28,728,202) | (200,000,000) | (661,167,166) | (33,000,000) |
Collection of loan to related parties | 3,034,886 | 21,128,271 | 622,850,900 | |
Loan to noncontrolling interest shareholder | (1,858,779) | |||
Net cash used in investing activities | (52,524,267) | (365,663,454) | (40,881,690) | (74,041,982) |
Cash flows from financing activities: | ||||
Capital contribution from noncontrolling interest shareholder | 1,858,779 | |||
Dividend paid to Jupai shareholders | (126,355,510) | (111,196,228) | ||
Dividend paid to noncontrolling interest shareholder | (16,152,503) | |||
Purchase of noncontrolling interest shareholder | (5,477,473) | |||
Prepayment of purchase of noncontrolling interests | (200,000) | |||
Proceeds from option exercise | 4,257 | 29,636 | 3,267,210 | 11,678,547 |
Net cash (used in) provided by financing activities | 4,257 | 29,636 | (121,429,521) | (121,147,657) |
Effect of exchange rate changes | (1,633,158) | (11,369,704) | 4,820,616 | (17,726,303) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (84,785,450) | (590,259,344) | (225,212,228) | 404,611,114 |
Cash, cash equivalents and restricted cash-beginning of the year | 187,101,761 | 1,302,565,042 | 1,527,777,270 | 1,123,166,156 |
Cash, cash equivalents and restricted cash-end of the year | 102,316,311 | 712,305,698 | 1,302,565,042 | 1,527,777,270 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for income taxes | $ 14,579,789 | ¥ 101,501,575 | 115,362,823 | 100,033,351 |
Non-cash investing and financing activities: | ||||
Disposal of a subsidiary included in other receivables | 3,000,000 | 2,000,000 | ||
Disposal of an investment included in other receivables | ¥ 2,000,000 | 2,000,000 | ||
Purchase of subsidiary shares from noncontrolling interests by settlement of the loan to noncontrolling interest shareholder | ¥ 3,297,719 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Reconciliation of Cash and cash equivalents and restricted cash reported within the consolidated balance sheets | ||||||
Cash and cash equivalents | $ 102,158,306 | ¥ 711,205,698 | ¥ 1,298,565,042 | ¥ 1,527,777,270 | ||
Restricted cash | 158,005 | 1,100,000 | 4,000,000 | |||
Cash and Cash Equivalents and Restricted Cash | $ 102,316,311 | ¥ 712,305,698 | $ 187,101,761 | ¥ 1,302,565,042 | ¥ 1,527,777,270 | ¥ 1,123,166,156 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
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 and asset management services 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. In July 2015, the Company completed its initial public offering (“IPO”) on NYSE, and acquired 100% equity interest in Scepter Pacific Limited (“Scepter”), from E-House Investment and Reckon Capital Limited upon closing of the Company’s IPO, in exchange for 32,481,552 of the Company’s ordinary shares. The aggregate transaction value of this acquisition was approximately USD56.4 million. Scepter is a holding company incorporated in BVI, and 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 USD1.83 per share, in a private placement. The aggregate transaction value of this private placement was approximately USD22.9 million. The Company’s significant subsidiaries as of December 31, 2019 include the following: Date of Place of Percentage of Incorporation/Acquisition Incorporation Ownership Shanghai Juxiang Investment Management Consulting Co., Ltd. ("Shanghai Juxiang") July 16, 2013 PRC 100 % Baoyi Investment Consulting (Shanghai) Co., Ltd. ("Shanghai Baoyi") July 16, 2015 PRC 100 % Jupai HongKong Investment Limited("Jupai Hong Kong") August 21, 2012 Hong Kong 100 % Shanghai Baoyixuan Investment Management Center (Limited Partnership) ("Baoyixuan") December 24, 2015 PRC 100 % Shanghai Jupai’s significant subsidiaries as of December 31, 2019 include the following: Place of Percentage of Date of Incorporation/acquisition Incorporation Ownership Juzhou Asset Management (Shanghai) Co., Ltd. ("Juzhou") May 17, 2013 PRC 85 % Shanghai Jupeng Asset Management Co., Ltd. ("Jupeng") June 8, 2015 PRC 85 % Shanghai Jupai Yumao Fund Sales Co., Ltd. (“Yumao”) Feb 26, 2014 PRC 100 % Shanghai Yubo Investment Management Co., Ltd. (“Yubo”) July 16, 2015 PRC 100 % Shanghai E-Cheng’s significant subsidiaries as of December 31, 2019 include the following: Place of Percentage of Date of Acquisition Incorporation Ownership Shanghai Yidezhen Investment Management Center (Limited Partnership) ("Yidezhen") July 16, 2015 PRC 100 % |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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. 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. Although PRC laws and regulations do not prohibit foreign-invested enterprises from obtaining such license, in practice, the supervisory authority, at its discretion, generally does not issue such license to a foreign-invested third-party mutual fund sales company. Therefore, the Company decided to conduct such business in China through Shanghai Jupai and its subsidiaries which are PRC domestic companies. 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. Mr. Ni’s equity interest in Shanghai Jupai in favor of Shanghai Juxiang is still under the process of registration with the local branch of regulatory authorities in Shanghai and has not been completed yet. (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 shareholders of Shanghai E-Cheng are in the process of applying with the local branch of SAIC in Shanghai for registration of their equity interest pledge. (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, 2019, 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 Group holds, including equity investments recorded in investment in affiliates and long-term investment in the consolidated balance sheet, and (ii) any one-time commissions, management fee and other service fees receivables recorded in amounts due from related parties. 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, 2018 and 2019, respectively . As of December 31, 2018 2019 2019 RMB RMB USD Amounts due from related parties — — Investments 83,514,067 11,996,045 Maximum exposure to loss in non-consolidated VIEs 83,514,067 11,996,045 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, 2018 2019 2019 RMB RMB USD Cash and cash equivalents 524,988,367 356,891,990 51,264,327 Restricted cash 4,000,000 1,100,000 158,005 Short-term investments 4,723,612 — — Accounts receivable 1,385,145 — — Other receivables 9,393,606 5,803,135 833,568 Amounts due from related parties, net of allowance for doubtful accounts of RMB33,684,333 and RMB60,490,862 as of December 31, 2018 and 2019, respectively 62,802,168 22,231,830 3,193,403 Other current assets 4,144,131 6,327,517 908,891 Long-term investments 48,950,000 18,950,000 2,721,997 Investment in affiliates 46,276,520 86,468,304 12,420,395 Property and equipment, net 1,610,045 971,091 139,488 Intangible assets, net 24,460,706 22,623,254 3,249,627 Other non-current assets 1,070,978 5,755,331 826,702 Right-of-use assets — 1,393,451 200,157 Deferred tax assets 66,400,516 4,608,063 661,907 Total assets 800,205,794 533,123,966 76,578,467 Accrued payroll and welfare expenses 37,608,320 28,055,363 4,029,901 Income tax payable 34,282,285 19,815,543 2,846,325 Other tax payable 12,123,866 (16,501,066) (2,370,230) Amounts due to related parties-current 11,082,834 10,963,967 1,574,875 Deferred revenue — current from related parties 100,033,490 28,056,641 4,030,084 Deferred revenue — current 5,406,737 17,211,666 2,472,301 Other current liabilities 12,882,315 13,940,969 2,002,495 Deferred revenue — non-current from related parties 20,766,792 4,774,671 685,839 Deferred revenue — non-current 1,849,843 311,651 44,766 Operating Lease Liabilities—non-current — 642,309 92,262 Total liabilities 236,036,482 107,271,714 15,408,618 Years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Net revenues 627,016,422 415,535,786 489,006,257 70,241,354 Third party 108,640,382 57,530,741 134,686,065 19,346,443 Related party 518,376,040 358,005,045 354,320,192 50,894,911 Operating cost and expenses 405,103,864 641,467,372 457,450,538 65,708,658 Net income (loss) attributable to ordinary shareholders 224,603,316 (406,544,377) (13,401,093) (1,924,947) Cash flows generated from (used in) operating activities: 174,718,889 (144,046,084) (173,478,148) (24,918,577) Cash flows (used in) generated from investing activities: (58,426,145) (17,511,862) 2,481,771 356,484 Cash flows used in financing activities: (16,152,503) (200,000) — — The VIEs contributed an aggregate of 37%, 31% and 62% of the consolidated net revenues for the years ended December 31, 2017, 2018 and 2019, respectively and an aggregate of 55%, 105% and 8% of the consolidated net income (loss) attributable to ordinary shareholders for the years ended December 31, 2017, 2018 and 2019, respectively. As of December 31, 2018 and 2019, the VIEs accounted for an aggregate of 40% and 34%, 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 15 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 allowance for doubtful accounts, 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, estimates involved in revenue recognition, assumption used to measure impairment of goodwill and impairment of equity investments 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, restricted cash, accounts receivable, other receivables, amounts due from related party and investments. All of the Group’s cash and cash equivalents, restricted cash and a majority of investments are held with financial institutions that Group management believes to be of high credit quality. Substantively all revenues were generated within China. There were no product providers or underlying corporate borrowers which accounted for 10% or more of total revenues for the years ended December 31, 2017, 2018, and 2019. (e) 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, which is recorded in loss from equity in affiliates. The Group recorded impairment loss of nil, RMB104.1 million, and RMB2.7 million for the years ended December 31, 2017, 2018 and 2019. 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 current period net income. (f) Fair Value of Financial Instruments The Group records its certain 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 inputs generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair value are therefore determined using model based techniques that include option pricing models, discounted cash flow models, and similar techniques. Certain assets of the Group were measured at fair value on a non-recurring basis subsequent to initial recognition. These assets include goodwill, investment in equity securities without readily determinable fair value and investment in affiliates in 2019. See Note 9, Note 5 and Note 6, respectively. (g) 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. (h) Restricted Cash The Group’s restricted cash represents cash restricted by court related to a lawsuit in which the group is a defendant. The restriction will be subsequently removed when the case is closed. (i) Accounts receivable, net Accounts receivable mainly represent amounts due from product providers or underlying corporate borrowers and are recorded net of allowance for doubtful accounts. The Group considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the product providers or underlying corporate borrowers’ payment history, creditworthiness, financial conditions of the product providers or underlying corporate borrowers and industry trend. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. The Group also makes specific allowance if there is strong evidence indicating that the accounts receivable is likely to be unrecoverable. Accounts receivable balances are written off after all collection efforts have been exhausted. The Group recorded allowance for doubtful accounts of nil, RMB19.7 million, and RMB6.4 million for the years ended December 31, 2017, 2018 and 2019. (j) Investments Debt Securities 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. The Group reviews, at individual security level, its held-to-maturity investments for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the amortized cost basis 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. Equity Securities The Group's investment in equity securities comprise of investment in privately-held companies and limited partnership in private equity fund. Prior to fiscal 2018, these investments in equity securities without readily determinable fair values were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. Effective January 1, 2018, upon adoption of ASU 2016-01, the Group has elected to measure these investments at cost minus impairment, if any, adjusted up or down for observable price changes (i.e., prices in orderly transactions for the identical or similar investment of the same issuer). Any adjustment to the carrying amount is recorded in net income. The Group also makes qualitative assessment at each reporting period and if the assessment indicates that the fair value of the investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss recorded in investment loss. (k) Noncontrolling interests A noncontrolling 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. Noncontrolling 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 noncontrolling interests. Below are changes in the Group’s ownership interest in its subsidiary on the Group’s equity. As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Net income (loss) attributable to ordinary shareholders 409,492,179 (387,744,018) (164,686,075) (23,655,674) Transfers from the noncontrolling interest Increase in Jupai's paid-in-capital for purchase shares of UP Capital Asset Management Ltd. 1,411,129 — — — Increase in Jupai's paid-in-capital for purchase of shares of Jupeng 13,305,431 — — — Net transfers from noncontrolling interest 14,716,560 — — — Change from net income (loss) attributable to ordinary shareholders and transfers from noncontrolling interest 424,208,739 (387,744,018) (164,686,075) (23,655,674) (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) Leases The Group determines if an arrangement is a lease at inception of the arrangement. The Group primarily enters into operating leases, as the lessee, for office space. Operating leases are included in Right‐of‐use (“ROU”) |
Net Income (loss) per Share
Net Income (loss) per Share | 12 Months Ended |
Dec. 31, 2019 | |
Net Income (loss) per Share | |
Net Income (loss) per Share | 3. Net Income (loss) per Share The following table sets forth the computation of basic and diluted net income (loss) per share attributable to ordinary shareholders: Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Net income (loss) attributable to ordinary shareholders — basic 409,492,179 (387,744,018) (164,686,075) (23,655,674) Net income (loss) attributable to ordinary shareholders — diluted 409,492,179 (387,744,018) (164,686,075) (23,655,674) Weighted average number of ordinary shares outstanding — basic 195,467,414 200,480,910 201,695,899 201,695,899 Plus: share options 8,592,663 — — — Plus: restricted shares 1,611,827 — — — Weighted average number of ordinary shares outstanding — diluted 205,671,904 200,480,910 201,695,899 201,695,899 Basic net income (loss) per share 2.09 (1.93) (0.82) (0.12) Diluted net income (loss) per share 1.99 (1.93) (0.82) (0.12) Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive: As of December 31, 2017 2018 2019 Share options — 9,424,471 9,145,983 Restricted shares — 1,241,352 1,182,370 Total — 10,665,823 10,328,353 |
Allowance for doubtful accounts
Allowance for doubtful accounts | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for doubtful accounts | |
Allowance for doubtful accounts | 4. Allowance for doubtful accounts The movement of the allowance for accounts receivable, other receivables and amounts due from related parties was as following: Years Ended December 31, 2017 2018 2019 RMB RMB RMB Balance as of January 1 — 3,997,417 63,211,728 Provisions for doubtful accounts 3,997,417 59,214,311 61,278,914 Write-off — — — Balance as of December 31 3,997,417 63,211,728 124,490,642 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments | |
Investments | 5. Investments The following table summarizes the Group’s investment balances: As of December 31, 2018 2019 2019 RMB RMB USD Short-term investments - Debt securities - held-to-maturity investments 4,723,612 — — Total short-term investments 4,723,612 — — Long-term investments - Equity securities without readily determinable fair values 58,950,000 228,950,000 32,886,610 Total investments 63,673,612 228,950,000 32,886,610 Debt securities 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 these investments of RMB2,809,517, RMB717,616 and nil for the years ended December 31, 2017, 2018 and 2019, respectively. The gross unrecognized gain was nil for December 31, 2017, 2018 and 2019, respectively, representing the difference between the estimated fair value and carrying amount of the held-to-maturity investments. As of December 31, 2018 and 2019, investments in equity securities without readily determinable fair value were RMB58,950,000 and RMB228,950,000, respectively. As of December 31, 2019, the Group's investment consist of investment in privately-held companies of RMB218,950,000 and limited partnership in private equity funds of RMB10,000,000. There have been no adjustments for price changes to the equity investments without readily determinable fair values for the year ended December 31, 2019. |
Investment in affiliates
Investment in affiliates | 12 Months Ended |
Dec. 31, 2019 | |
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 2018 2019 2019 RMB % RMB % USD % Private equity funds that the Company serves as general partner or fund manager (1) 30,487,247 — 75,750,152 — 10,880,829 — Changjiang Jupai (Shanghai) Finance Consulting Co., Ltd. (“Changjiang Jupai”) (2) 11,194,270 25.0 % 11,449,125 25.0 % 1,644,564 25.0 % Shanghai Wuling Investment Center (“Wuling Center”) 6,696,246 1.2 % 7,763,915 1.2 % 1,115,217 1.2 % Shanghai Jucheng Zhidi Co., Ltd ("Jucheng Zhidi") (3) — — 2.0 % 2.0 % Shanghai Guochen Equity Management Co., Ltd. (“Guochen”) 3,637,499 8.3 % 3,398,720 8.3 % 488,196 8.3 % Shanghai Juzhi Investment Management Co., Ltd. (“Juzhi”) 3,984,209 50.0 % 2,680,206 50.0 % 384,988 50.0 % Shanghai Jupai Hehui Asset Management Co., Ltd. ("Hehui") (4) 4,135,930 49.0 % — — — — Shanghai Jinyong Investment Management Co., Ltd. ("Jinyong") (5) 3,321,753 31.0 % — — — — Others 3,805,277 1,588,622 228,189 Total investments 67,262,431 107,541,000 15,447,298 The investments above are accounted for using equity method of accounting. (1) Shanghai Juxiang and Scepter 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. (2) The Group invested RMB8,000,000 for 40% equity interest in Changjiang Jupai and accounted for the investment with equity method accounting. In January 2017, the Group disposed of a 10% equity interest in Changjiang Jupai to an unrelated party for a consideration of RMB2,000,000. In December 2017, Changjiang Jupai increased the registered capital to RMB24,000,000, and attracted one more investor, whose investment diluted the Company’s shareholding into 25%. (3) The Group invested RMB5,000,000 for 2% equity interest in Shanghai Jucheng Zhidi Co., Ltd this year and accounted for the investment with equity method accounting. The main operating business is real estate development and management. (4) 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 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 re-measured at fair value and has been subsequently accounted for as equity method investment. The Group disposed of the entire investment in 2019 for RMB4.0 million (USD0.57 million). (5) Jinyong used to be a consolidated subsidiary of the Group in which the Group owned 80% equity interest. In May 2018, the Group sold 49% equity interest in Jinyong to unrelated third parties, determined the Group no longer controlled the entity and as a result deconsolidated Jinyong. The remaining 31% equity interest in Jinyong was re-measured at fair value and has been subsequently accounted for as equity method investment. In December 2018, Jinyong increased paid-in capital by RMB15 million of which the Group invested RMB4.7 million (USD0.68 million) into remain its 31% equity interest. The Group disposed of the entire investment in 2019 for RMB6.2 million (USD0.89 million). In addition to the above, the Group also held investments in several fund management companies, none of which is individually material. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment, Net | |
Property and Equipment, Net | 7. Property and Equipment, Net Property and equipment, net consists of the following: As of December 31, 2018 2019 2019 RMB RMB USD Leasehold improvements 46,392,697 58,329,033 8,378,440 Furniture, fixtures and equipment 29,534,670 30,852,788 4,431,726 Motor vehicles 4,281,395 3,701,461 531,682 Total 80,208,762 92,883,282 13,341,848 Accumulated depreciation (43,941,720) (64,601,406) (9,279,411) Deconsolidation — (447,116) (64,224) Property and equipment, net 36,267,042 27,834,760 3,998,213 Depreciation expense was RMB10,902,651, RMB13,416,578 and RMB20,659,686 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net | |
Intangible Assets, Net | 8. Intangible Assets, Net Intangible assets are comprised of the following: As of December 31, 2018 2019 2019 RMB RMB USD Customer contracts 66,590,884 67,687,278 9,722,669 Software 36,937,043 37,670,816 5,411,074 License 942,481 942,481 135,379 Less: accumulated amortization 71,310,260 76,752,418 11,024,795 Intangible assets subject to amortization 33,160,148 29,548,157 4,244,327 License with indefinite life 26,891,801 11,733,541 1,685,418 Foreign currency translation adjustment (1,927,341) (3,031,219) (435,407) Intangible assets, net 58,124,608 38,250,479 5,494,338 Insurance Brokerage 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 RMB21,669,520, RMB22,872,976 and RMB5,442,158 for the years ended December 31, 2017, 2018 and 2019, respectively. The Group expects to record amortization expense of RMB3,754,913, RMB3,754,913, RMB3,754,913, RMB3,754,913, RMB3,754,913 for the years ending December 31, 2020, 2021, 2022, 2023 and 2024, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill | |
Goodwill | 9. Goodwill The movement in carrying amount of goodwill is as follows: Years Ended December 31, RMB Balance as of January 1, 2018 261,621,691 Addition for acquisitions — Impairment (267,917,575) Foreign currency translation adjustments 6,592,915 Balance as of January 1, 2019 297,031 Deconsolidation (297,031) Impairment — Foreign currency translation adjustments — Balance as of December 31, 2019 — Goodwill is primarily generated from the acquisition for 100% equity interests of Scepter in 2015 amounting to USD40 million, and the management performs goodwill impairment test annually. The Group has one reporting unit. In 2018, the management has conducted assessment and determined it is more likely than not that the fair value of the reporting unit is less than its carrying amount. By comparing the fair value of the reporting unit with its carrying amount, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value to the extent of the goodwill carrying value. Impairment loss of RMB267.9 million was recorded as impairment loss of goodwill. In 2019, we disposed UP Capital Asset Management Limited (BVI) (“UP”) for RMB34.0 million to a subsidiary of E-house, with a result of deconsolidation of UP and elimination of the goodwill. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 10. Leases The Group's noncancelable operating leases consist of leases for office space. The Group is the lessee under the terms of the operating leases. For the year ended December 31, 2019, the operating lease cost was RMB82.2 million. The Group's operating leases have remaining lease terms that range from approximately one year to four years. As of December 31, 2019, the weighted average remaining lease term and weighted average discount rate were 1.55 years and 5.7%, respectively. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2019 | |
Dividends | |
Dividends | 11. Dividends On February 28, 2017, Jupai Holdings declared a cash dividend on the accumulated undistributed earnings of USD16,172,640 to all the shareholders of Jupai Holdings, and the dividend was paid in March 2017. In April 2017, Jupeng declared a cash dividend on the accumulated undistributed earnings of RMB5,992,000 to the minority shareholder, and the dividend was paid in May 2017. On March 12, 2018, Jupai Holdings declared a cash dividend on the accumulated undistributed earnings of USD19,950,975 to all the shareholders of Jupai Holdings, and the dividend was paid in May 2018. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation | |
Share-Based Compensation | 12. 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 USD0.48 and USD1.00 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 Group uses the current share price as the fair value of underlying ordinary shares. The Company recorded compensation expense related to previously issued stock options of RMB9,052,789, RMB1,165,543 and nil for the years ended December 31, 2017, 2018 and 2019. A summary of option activity under the 2014 Plan during the year ended December 31, 2019. Weighted Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value of Options Price Term Options RMB RMB Outstanding, as of January 1, 2019 9,424,471 Exercised (9,200) Forfeited (269,288) Outstanding, as of December 31, 2019 9,145,983 4.61 — Exercisable as of December 31, 2019 9,145,983 4.61 — No options were granted for years ended December 31, 2017, 2018 and 2019. The total intrinsic value of options exercised were RMB47,051,806, RMB19,964,965 and RMB42,592 for the years ended December 31, 2017, 2018 and 2019. As of December 31, 2019, there was nil unrecognized compensation expense related to unvested share options granted under the 2014 Plan. Non-vested restricted shares: On January 1, 2017, the Company granted 50,616 restricted shares to one employee. The fair value of the restricted shares on grant date is USD1.47. The restricted shares vest ratably at each grant date anniversary over a period of three years. On February 27, 2017, the Company granted 4,211,532 restricted shares to certain senior management. The fair value of the restricted shares on grant date is USD1.59. The restricted shares vest ratably at each grant date anniversary over a period of three years. On April 3, 2017, the Company granted 600,000 restricted shares to certain senior management. The fair value of the restricted shares on grant date is USD1.46. The restricted shares vest ratably at each grant date anniversary over a period of three years. On January 4, 2019, the Company granted 900,000 restricted shares to certain senior management. The fair value of the restricted shares on grant date is USD0.73. 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, 2019. Weighted Average Number of Grant-date Shares Fair Value RMB Unvested, as of January 1, 2019 1,241,352 10.88 Granted 900,000 5.02 Forfeited (710,356) 11.03 Vested (248,626) 11.03 Unvested, as of December 31, 2019 1,182,370 6.49 The total fair value of non-vested restricted shares as of December 31, 2019 was RMB7,673,581. 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 total fair value of shares vested during the years ended December 31, 2017, 2018 and 2019, was RMB8,826,273, RMB38,211,775 and RMB2,742,345, respectively. The Company recorded compensation expense of RMB21,403,150, RMB16,943,399 and RMB9,583,596 for the years ended December 31, 2017, 2018 and 2019. As of December 31, 2019, there was RMB4,206,350 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 1.56 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 13. 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. PRC and Hong Kong Under the current Hong Kong Inland Revenue Ordinance, our subsidiaries established in Hong Kong are subject up to 16.5% progressive 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. 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 comprises: Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Current Tax 141,126,316 163,676,039 15,018,507 2,157,273 Deferred Tax (18,127,807) (33,820,672) 37,926,132 5,447,748 Total 122,998,509 129,855,367 52,944,639 7,605,021 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, 2017 2018 2019 PRC income tax rate 25.00 % 25.00 % 25.00 % Expenses not deductible for income tax purposes 1.62 % (9.47) % (25.47) % Goodwill impairment — (44.22) % — Losses not deductible for income tax purposes — (5.40) % (12.81) % Tax-free income (1.75) % 1.10 % — Valuation allowance of deferred tax assets — (55.56) % (33.12) % Uncertain tax position impact (1.09) % — — Different tax rate of subsidiary operation in other jurisdiction (1.13) % 2.81 % 0.16 % Effective income tax rate 22.65 % (85.74) % (46.24) % The principal components of the deferred income tax asset and liabilities are as follows: As of December 31, 2018 2019 2019 RMB RMB USD Deferred tax assets: Deferred revenue 38,727,695 — — Accrued expenses 112,027,905 4,608,063 661,907 Tax loss carry forward 34,376,091 67,843,392 9,745,093 Gross deferred tax assets 185,131,691 72,451,455 10,407,000 Valuation allowance (84,146,463) (67,843,392) (9,745,093) Net deferred tax assets 100,985,228 4,608,063 661,907 Deferred tax liabilities: Amortization of intangible assets 198,187 — — Total deferred tax liabilities 198,187 — — Movement of the valuation allowance is as follows: As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Balance as of January 1 — — 84,146,463 12,086,883 Additions — 84,146,463 37,227,678 5,347,421 Write-offs — — (53,530,749) (7,689,211) Balance as of December 31 — 84,146,463 67,843,392 9,745,093 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. As of December 31, 2019, operating loss carried forward amounted to RMB271.4 million for the PRC and HK income tax purposes. The loss carrying forward will begin to expire in 2020. Valuation allowance of RMB84,146,463 and RMB67,843,392 was recorded as of December 31,2018 and 2019 for the entities that are not more likely than not to realize the net operating loss carry forward. Undistributed earnings of the Company’s PRC subsidiaries of approximately RMB858.3 million at December 31, 2019 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 RMB42.9 million to RMB85.8 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 RMB192.1 million as of December 31, 2019. 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 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, 2017 5,938,816 Gross increases—accrued interest in current period — Reversal (5,938,816) Uncertain tax position—December 31, 2017, 2018 and 2019 — |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | 14. 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 RMB102.6 million, RMB131.8 million and RMB89.0 million for the years ended December 31, 2017, 2018 and 2019 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, 2019 | |
Restricted Net Assets | |
Restricted Net Assets | 15. 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 allocate 10% 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 RMB74,441,552 and RMB79,750,650 as of December 31, 2018 and 2019, 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 RMB395,387,537 and RMB407,718,537 as of December 31, 2018 and 2019, 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 RMB469,829,089 and RMB487,469,187 as of December 31, 2018 and 2019, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Segment Information | 16. 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 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 and asset management services. Substantively all of the Group’s revenues are derived from China. The Group’s long-lived assets are located substantially in the PRC. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Related Party Transactions | 17. 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. During the years ended December 31, 2017, 2018 and 2019, significant related party transactions and balances were as follows: a. Revenue from Related Parties Years Ended December 31 2017 2018 2019 2019 RMB RMB RMB USD One-time commissions Funds managed by Jupai Group 739,471,960 521,493,884 58,676,277 8,428,320 Investees of shareholder of the Company 429,483 2,821,409 2,047,634 294,124 Total one-time commissions 739,901,443 524,315,293 60,723,911 8,722,444 Recurring management fee Funds managed by Jupai Group 365,045,532 436,947,202 340,732,359 48,943,141 Total recurring management fee 365,045,532 436,947,202 340,732,359 48,943,141 Recurring service fee Funds managed by Jupai Group 10,081,396 1,256,411 1,433,629 205,928 Total recurring service fee 10,081,396 1,256,411 1,433,629 205,928 Other service fee Funds managed by Jupai Group 117,757,338 28,301,887 — — Total other service fee 117,757,338 28,301,887 — — Total revenue from related parties 1,232,785,709 990,820,793 402,889,899 57,871,513 b. Transaction to Related Parties In 2019, UP Capital Asset Management Limited (BVI) ("UP") was disposed for RMB34.0 million to a subsidiary of E-house. c. Amounts due from Related Parties As of December 31, 2018 and 2019, amounts due from related parties were comprised of the following: As of December 31, 2018 2019 2019 RMB RMB USD Funds managed by Jupai Group 210,587,355 101,122,751 14,525,375 Investees of shareholder of the Company 54,426 — — Loan to related parties — 200,000,000 28,728,202 Loan to noncontrolling interest shareholder 37,316,266 23,187,995 3,330,747 Total amounts due from related parties 247,958,047 46,584,324 Other than the loan to noncontrolling interest shareholders, loan to related parties and investees of shareholder of the company, the remaining amounts primarily represent the service fee receivable as of December 31, 2018 and 2019. d. Deferred Revenue from Related Parties As of December 31, 2018 and 2019, deferred revenue from related parties were comprised of the following: As of December 31, 2018 2019 2019 RMB RMB USD Funds managed by Jupai Group 133,817,091 46,971,804 6,747,077 Total deferred revenue 133,817,091 46,971,804 6,747,077 The amounts represent recurring management fees and recurring service fees received from the investment funds managed or served by the Group in advance. e. Amounts due to Related Parties As of December 31, 2018 and 2019, amounts due to related parties were as following: As of December 31, 2018 2019 2019 RMB RMB USD Funds managed by Jupai Group 29,105,111 17,439,664 2,505,051 Investees of shareholder of the Company 2,000,000 2,000,000 287,282 Total amounts due to related parties 31,105,111 19,439,664 2,792,333 The amounts as of December 31, 2018 and 2019 mainly represent capital investments collected on behalf of investees. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 18. Commitments and Contingencies 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, 2019 were as follows: Years Ended December 31, RMB 2020 36,892,048 2021 23,676,676 2022 7,428,066 2023 and after 538,722 Total 68,535,512 Rental expenses were RMB83,147,890, RMB94,635,510 and RMB82,161,925 during the years ended December 31, 2017, 2018 and 2019, respectively. Contingencies As of December 31, 2018 and 2019, there were no material contingencies, significant provisions of long-term obligations of the Group. The Group does not believe that any of these matters will have a material effect on its business, assets or operations. Investment commitments The Group was obligated to provide capital injection of RMB53,546,000 as of December 31, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
Subsequent Events | 19. Subsequent Events In December 2019, novel coronavirus (COVID-19) was first reported to surface in Wuhan, China. Subsequent to December 31, 2019, COVID-19 has spread rapidly globally, resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities, resulting in a tremendous challenge to the global economy. And the Group’s results of operation may be adversely affected to the extent that it harms the Chinese economy in general. On February 26, 2020, the Group announced a share repurchase program under which the Company is authorized to repurchase its American depositary shares (“ADSs”) with an aggregate value of up to US$10 million over the next 24-month period. |
Additional Financial Informatio
Additional Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
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 except for share data) As of December 31, 2018 2019 2019 RMB RMB USD ASSETS Cash and cash equivalents 10,424,536 40,043,612 5,751,905 Other current assets 446,736 535,595 76,933 Total current assets 10,871,272 40,579,207 5,828,838 Investment in subsidiaries and VIE 1,144,961,352 963,676,905 138,423,526 Property and equipment, net 32,409 — — Other non-current assets 418,307 — — Loan to subsidiaries 197,998,064 200,610,890 28,815,951 Total Assets 1,354,281,404 1,204,867,002 173,068,315 LIABILITIES Other current liabilities 2,424,155 4,250,542 610,552 Amounts due to related parties — non-current 12,845,906 13,057,409 1,875,579 Total Liabilities 15,270,061 17,307,951 2,486,131 Ordinary Shares (USD0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 201,479,446 and 201,737,272 shares issued and outstanding, as of December 31, 2018 and 2019, respectively) 631,715 632,601 90,867 Additional paid-in capital 1,138,107,676 1,150,352,309 165,237,770 Retained earnings 147,118,546 (17,567,529) (2,523,418) Accumulated other comprehensive income 53,153,406 54,141,670 7,776,965 Total shareholders’ equity 1,339,011,343 1,187,559,051 170,582,184 TOTAL LIABILITIES AND SHAREHOLERS’ EQUITY 1,354,281,404 1,204,867,002 173,068,315 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, 2017 2018 2019 2019 RMB RMB RMB USD Revenues — — 2,051,459 294,674 Cost of revenues (2,433,718) (187,196) — — Selling expenses (1,574,380) (3,418,127) (7,225,289) (1,037,848) General and administrative expenses (35,254,910) (24,195,705) (14,615,621) (2,099,403) Other income (loss) 290,197 2,345,741 (2,938,226) (422,050) Interest income 4,862 1,502 — — Loss before taxes and loss from equity in subsidiaries and VIEs (38,967,949) (25,453,785) (22,727,677) (3,264,627) Income (loss) from equity in subsidiaries and VIEs 448,460,128 (362,290,233) (141,958,398) (20,391,047) Net income (loss) 409,492,179 (387,744,018) (164,686,075) (23,655,674) Other comprehensive (loss) income (36,401,114) 12,382,963 (3,272,053) (470,002) Comprehensive income (loss) attributable to ordinary shareholders 373,091,065 (375,361,055) (167,958,128) (24,125,676) 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, 2017 2018 2019 2019 RMB RMB RMB USD Cash flows from operating activities: Net income (loss) 409,492,179 (387,744,018) (164,686,075) (23,655,674) Adjustment to reconcile net income to net cash provided by operating activities: Share-based compensation 30,455,939 18,108,942 9,583,596 1,376,597 Depreciation 10,890 20,227 32,409 4,655 (Loss) income from equity in subsidiaries and VIEs (448,460,128) 362,290,233 141,958,398 20,391,047 Changes in operating assets and liabilities: Other receivables 20,811,000 — — — Other current assets 527,481 222,416 (88,859) (12,764) Other non-current assets (333,357) (84,950) 418,307 60,086 Other current liabilities 1,349,551 431,312 1,826,388 262,344 Net cash provided by (used in) operating activities 13,853,555 (6,755,838) (10,955,836) (1,573,709) Cash flows from investing activities: Collection of loan to subsidiaries 1,896,887 5,572,843 647,137 92,955 Purchases of property and equipment, intangible assets (63,527) — — — Investment in Up Capital (17,172,335) — — — Proceeds from disposal of Up Capital — — 33,999,151 4,883,672 Investment in Non-linear (4,108,940) — — — Net cash (used in) provided by investing activities (19,447,915) 5,572,843 34,646,288 4,976,627 Cash flows from financing activities: Exercise of options 11,678,547 3,267,210 29,636 4,257 Dividend paid by Jupai Holdings (111,196,228) (126,355,510) — — Net cash (used in) provided by financing activities (99,517,681) (123,088,300) 29,636 4,257 Effect of exchange rate changes (10,039,644) (12,762,126) 5,898,988 847,339 Net (decrease) increase in cash and cash equivalents (115,151,685) (137,033,421) 29,619,076 4,254,514 Cash and cash equivalents — beginning of year 262,609,642 147,457,957 10,424,536 1,497,391 Cash and cash equivalents — end of year 147,457,957 10,424,536 40,043,612 5,751,905 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, 2019, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company. 4. Translations of amounts from RMB into USD are solely for the convenience of the readers and were calculated at the rate of USD1.00 for RMB6.9618 on December 31, 2019, representing the certificated exchange rate published by the Federal Reserve Board. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. 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. Although PRC laws and regulations do not prohibit foreign-invested enterprises from obtaining such license, in practice, the supervisory authority, at its discretion, generally does not issue such license to a foreign-invested third-party mutual fund sales company. Therefore, the Company decided to conduct such business in China through Shanghai Jupai and its subsidiaries which are PRC domestic companies. 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. Mr. Ni’s equity interest in Shanghai Jupai in favor of Shanghai Juxiang is still under the process of registration with the local branch of regulatory authorities in Shanghai and has not been completed yet. (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 shareholders of Shanghai E-Cheng are in the process of applying with the local branch of SAIC in Shanghai for registration of their equity interest pledge. (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, 2019, 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 Group holds, including equity investments recorded in investment in affiliates and long-term investment in the consolidated balance sheet, and (ii) any one-time commissions, management fee and other service fees receivables recorded in amounts due from related parties. 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, 2018 and 2019, respectively . As of December 31, 2018 2019 2019 RMB RMB USD Amounts due from related parties — — Investments 83,514,067 11,996,045 Maximum exposure to loss in non-consolidated VIEs 83,514,067 11,996,045 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, 2018 2019 2019 RMB RMB USD Cash and cash equivalents 524,988,367 356,891,990 51,264,327 Restricted cash 4,000,000 1,100,000 158,005 Short-term investments 4,723,612 — — Accounts receivable 1,385,145 — — Other receivables 9,393,606 5,803,135 833,568 Amounts due from related parties, net of allowance for doubtful accounts of RMB33,684,333 and RMB60,490,862 as of December 31, 2018 and 2019, respectively 62,802,168 22,231,830 3,193,403 Other current assets 4,144,131 6,327,517 908,891 Long-term investments 48,950,000 18,950,000 2,721,997 Investment in affiliates 46,276,520 86,468,304 12,420,395 Property and equipment, net 1,610,045 971,091 139,488 Intangible assets, net 24,460,706 22,623,254 3,249,627 Other non-current assets 1,070,978 5,755,331 826,702 Right-of-use assets — 1,393,451 200,157 Deferred tax assets 66,400,516 4,608,063 661,907 Total assets 800,205,794 533,123,966 76,578,467 Accrued payroll and welfare expenses 37,608,320 28,055,363 4,029,901 Income tax payable 34,282,285 19,815,543 2,846,325 Other tax payable 12,123,866 (16,501,066) (2,370,230) Amounts due to related parties-current 11,082,834 10,963,967 1,574,875 Deferred revenue — current from related parties 100,033,490 28,056,641 4,030,084 Deferred revenue — current 5,406,737 17,211,666 2,472,301 Other current liabilities 12,882,315 13,940,969 2,002,495 Deferred revenue — non-current from related parties 20,766,792 4,774,671 685,839 Deferred revenue — non-current 1,849,843 311,651 44,766 Operating Lease Liabilities—non-current — 642,309 92,262 Total liabilities 236,036,482 107,271,714 15,408,618 Years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Net revenues 627,016,422 415,535,786 489,006,257 70,241,354 Third party 108,640,382 57,530,741 134,686,065 19,346,443 Related party 518,376,040 358,005,045 354,320,192 50,894,911 Operating cost and expenses 405,103,864 641,467,372 457,450,538 65,708,658 Net income (loss) attributable to ordinary shareholders 224,603,316 (406,544,377) (13,401,093) (1,924,947) Cash flows generated from (used in) operating activities: 174,718,889 (144,046,084) (173,478,148) (24,918,577) Cash flows (used in) generated from investing activities: (58,426,145) (17,511,862) 2,481,771 356,484 Cash flows used in financing activities: (16,152,503) (200,000) — — The VIEs contributed an aggregate of 37%, 31% and 62% of the consolidated net revenues for the years ended December 31, 2017, 2018 and 2019, respectively and an aggregate of 55%, 105% and 8% of the consolidated net income (loss) attributable to ordinary shareholders for the years ended December 31, 2017, 2018 and 2019, respectively. As of December 31, 2018 and 2019, the VIEs accounted for an aggregate of 40% and 34%, 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 15 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 allowance for doubtful accounts, 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, estimates involved in revenue recognition, assumption used to measure impairment of goodwill and impairment of equity investments 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, restricted cash, accounts receivable, other receivables, amounts due from related party and investments. All of the Group’s cash and cash equivalents, restricted cash and a majority of investments are held with financial institutions that Group management believes to be of high credit quality. Substantively all revenues were generated within China. There were no product providers or underlying corporate borrowers which accounted for 10% or more of total revenues for the years ended December 31, 2017, 2018, and 2019. |
Investments in Affiliates | (e) 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, which is recorded in loss from equity in affiliates. The Group recorded impairment loss of nil, RMB104.1 million, and RMB2.7 million for the years ended December 31, 2017, 2018 and 2019. 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 current period net income. |
Fair Value of Financial Instruments | (f) Fair Value of Financial Instruments The Group records its certain 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 inputs generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair value are therefore determined using model based techniques that include option pricing models, discounted cash flow models, and similar techniques. Certain assets of the Group were measured at fair value on a non-recurring basis subsequent to initial recognition. These assets include goodwill, investment in equity securities without readily determinable fair value and investment in affiliates in 2019. See Note 9, Note 5 and Note 6, respectively. |
Cash and Cash Equivalents | (g) 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. |
Restricted Cash | (h) Restricted Cash The Group’s restricted cash represents cash restricted by court related to a lawsuit in which the group is a defendant. The restriction will be subsequently removed when the case is closed. |
Accounts receivable, net | (i) Accounts receivable, net Accounts receivable mainly represent amounts due from product providers or underlying corporate borrowers and are recorded net of allowance for doubtful accounts. The Group considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the product providers or underlying corporate borrowers’ payment history, creditworthiness, financial conditions of the product providers or underlying corporate borrowers and industry trend. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. The Group also makes specific allowance if there is strong evidence indicating that the accounts receivable is likely to be unrecoverable. Accounts receivable balances are written off after all collection efforts have been exhausted. The Group recorded allowance for doubtful accounts of nil, RMB19.7 million, and RMB6.4 million for the years ended December 31, 2017, 2018 and 2019. |
Investments | (j) Investments Debt Securities 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. The Group reviews, at individual security level, its held-to-maturity investments for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the amortized cost basis 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. Equity Securities The Group's investment in equity securities comprise of investment in privately-held companies and limited partnership in private equity fund. Prior to fiscal 2018, these investments in equity securities without readily determinable fair values were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. Effective January 1, 2018, upon adoption of ASU 2016-01, the Group has elected to measure these investments at cost minus impairment, if any, adjusted up or down for observable price changes (i.e., prices in orderly transactions for the identical or similar investment of the same issuer). Any adjustment to the carrying amount is recorded in net income. The Group also makes qualitative assessment at each reporting period and if the assessment indicates that the fair value of the investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss recorded in investment loss. |
Noncontrolling interests | (k) Noncontrolling interests A noncontrolling 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. Noncontrolling 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 noncontrolling interests. Below are changes in the Group’s ownership interest in its subsidiary on the Group’s equity. As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Net income (loss) attributable to ordinary shareholders 409,492,179 (387,744,018) (164,686,075) (23,655,674) Transfers from the noncontrolling interest Increase in Jupai's paid-in-capital for purchase shares of UP Capital Asset Management Ltd. 1,411,129 — — — Increase in Jupai's paid-in-capital for purchase of shares of Jupeng 13,305,431 — — — Net transfers from noncontrolling interest 14,716,560 — — — Change from net income (loss) attributable to ordinary shareholders and transfers from noncontrolling interest 424,208,739 (387,744,018) (164,686,075) (23,655,674) |
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. |
Leases | (m) Leases The Group determines if an arrangement is a lease at inception of the arrangement. The Group primarily enters into operating leases, as the lessee, for office space. Operating leases are included in Right‐of‐use (“ROU”) Assets, Other current liabilities (current portion of liabilities) and Operating lease liabilities (non-current liabilities) on the Consolidated balance sheet. ROU Assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Group determines the present value of the lease payments using an incremental borrowing rate based on information available at the inception date. Leases may include options to extend or terminate the lease which are included in the ROU Assets and liabilities when they are reasonably certain of exercise. Certain leases include lease and nonlease components, which are accounted for as one single lease component. Occupancy lease agreements, in addition to contractual rent payments, generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the extent these are fixed or determinable, they are included as part of the minimum lease payments used to measure the lease liabilities. Operating lease expense associated with minimum lease payments is recognized on a straight‐line basis over the lease term. When additional payments are based on usage or vary based on other factors, they are expensed when incurred as variable lease expense. Minimum lease payments for leases with an initial term of twelve months or less are not recorded on the Consolidated balance sheet. The Group recognizes lease expense for these leases on a straight‐line basis over the lease term. Additional disclosures relating to leases are discussed in Note 10. “Leases”. |
Revenue Recognition | (n) 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. There is no material impact of the adoption of ASC 606 on January 1, 2018 using the modified retrospective method to its consolidated financial statements. Under the guidance of ASC 606, the Group is required to: (i) identify the contracts with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contracts and (v) recognize revenue when the entity satisfies a performance obligation. Revenues are recorded, net of sales related taxes and surcharges. 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. Disaggregation of revenue The following table shows revenue from contracts with customers disaggregated by service lines for the years ended December 31, 2017, 2018 and 2019: Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD One-time commissions 1,042,685,658 739,894,527 320,817,881 46,082,605 Related party 739,901,443 524,315,293 60,723,911 8,722,444 Third party 302,784,215 215,579,234 260,093,970 37,360,161 Recurring management fee 365,045,532 436,947,202 340,732,359 48,943,141 Related party 365,045,532 436,947,202 340,732,359 48,943,141 Third party — — — — Recurring service fees 105,403,427 64,555,866 115,247,648 16,554,289 Related party 10,081,396 1,256,411 1,433,629 205,928 Third party 95,322,031 63,299,455 113,814,019 16,348,361 Other service fees 199,568,639 84,669,810 13,962,264 2,005,554 Related party 117,757,338 28,301,887 — — Third party 81,811,301 56,367,923 13,962,264 2,005,554 Total revenues 1,712,703,256 1,326,067,405 790,760,152 113,585,589 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. After the contract is established, there are no significant judgments made when determining the one-time commission price. Recurring Service Fees Recurring service fee 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 performance-based fee based on the extent by which the fund’s investment performance exceeds a certain threshold. Such performance-based fees earned based on the performance of the Group are a form of variable consideration in its contracts with customers to provide investment management services. Revenue is recognized when performance-based measures 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 a form of variable consideration and recognized as revenue typically at the end of fund’s contract term when the uncertainty associated with the variability is resolved. 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 revenue. Other service fees Other service fee refers to revenue generated from consulting services provided to peers in asset management industry and other companies seeking for equity investment. Service fees are negotiated case by case, and are specified in agreements before services are provided. Revenue is recognized upon completion of the services and when it becomes probable that a significant reversal in the amount of revenue will not occur. Contract modifications Contract modifications occur when the Group and its customers agree to modify existing customer contracts to change the scope or price (or both) of the contract or when a customer terminates some, or all, of the existing services provided by the Group. When a contract modification occurs, it requires the Group to exercise judgment to determine if the modification should be accounted for as: (i) a separate contract, (ii) the termination of the original contract and creation of a new contract, or (iii) a cumulative catch up adjustment to the original contract. Further, contract modifications require the identification and evaluation of the performance obligations of the modified contract, including the allocation of revenue to the remaining performance obligations and the period of recognition for each identified performance obligation. In 2018, the Group modified certain contracts for changes in transaction price for the services that are not distinct from the existing contract. As such, these modifications are accounted for as if they were part of the existing contract, and therefore, the effect of the modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis in the period of modification. The amount of cumulative adjustment to revenue recorded in 2018 and 2019 as a result of contract modification was RMB122.7 million and nil respectively. Transaction Price Allocation among Performance Obligations The Group enters into contracts with product providers or underlying corporate borrowers 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. Each of the wealth management marketing service, recurring service, and other service represent a separate performance obligation. The Group allocate the total consideration among various performance obligations at inception of contracts based on their relative stand-alone selling price (“SSP”). The Group has observable SSP for its wealth management marketing services and other services for certain products as it provides such services separately to other similar customers. The Group has not sold its recurring services separately. The Group adopts either the adjusted market assessment approach or the residual approach when the SSP is not directly observable and is either highly variable or uncertain. Revenue for the respective performance obligation is recognized in the same manner as described above. Contract Balances The Group enters into contracts with customers, of which obligations are performed over a period. The Group records contract liabilities in deferred revenue when payments are received in advance of the performance obligations being satisfied. Certain contracts require that a portion of the payment be deferred until the end of the wealth management product’s life or other specified contingencies. As of December 31, 2018 and 2019, total amount of deferred revenue are RMB154,910,781 and RMB82,957,958 respectively, of which RMB130,669,882 and RMB77,728,462 estimated to be recognized within one year, RMB24,240,899 and RMB5,229,496 over one year to two years. Practical Expedience The Group has used the following practical expedients as allowed under ASC 606: The Group expenses sales commissions as incurred when the amortization period is one year or less. Sales commission expenses are recorded within “Cost of Revenues” in the consolidated statements of operations. The Group has also applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Group recognizes revenue in proportion to the amount the Group has the right to invoice for services performed. |
Sales Related Tax and Related Surcharges | (o) Sales Related Tax and Related Surcharges The Group is subject to value-added tax (“VAT”), education surtax, and urban maintenance and construction tax, on the services provided in the PRC. The applicable VAT rate for the Group is 3% to 6%. |
Cost of Revenues | (p) 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. |
Selling Expenses | (q) Selling Expenses Selling expenses primarily consist of payroll, bonus and benefits of sales and marketing staff, brand promotion costs, and agency fees. Brand promotion costs are expensed as incurred. Brand promotion costs in connection with the provision of marketing and promotion services consisted of fees the Group paid to third party venders for brand promotion on various online and offline channels. Such costs were included as selling expenses in the consolidated statements of operations and totaled RMB12,021,015, RMB16,831,978 and RMB9,019,349 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Intangible assets, net | (r) Intangible assets, net Acquired intangible assets mainly consist of customer contracts, internal-used software and licenses from business combinations and are recorded at fair value on the acquisition date. Customer contracts, internal-used software and certain licenses are amortized using a straight-line method. Most of the licenses are determined to be indefinitely-lived, and not subject to amortization. Estimated Useful Lives in Years Customer contracts 3.5 yeas Internal-used software 10 years Licenses amortized Shorter of the legal rights or expected useful life |
Impairment of long-lived assets | (s) 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. The Group evaluates intangible assets that are not subject to amortization for impairment annually and more frequently if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Group conducts quantitative impairment tests for indefinite-lived intangible assets and compares the fair value of the asset with its carrying amount. The Group recognizes impairment loss on the amount by which the carrying value exceeds the fair value of the asset. After an impairment loss is recognized, the Group uses adjusted carrying amount of the intangible asset as its new accounting basis. |
Goodwill | (t) 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. Prior to January 1, 2018, the Group performed a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, the Group compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the Group performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. Starting from January 1, 2018, the Group early adopted ASU 2017-04. A reporting unit is identified as a component for which discrete financial information is available and is regularly reviewed by management. As the Group operates in a sole segment, which is value-added wealth management and asset management services, management concluded that it had only one reporting unit, and therefore the goodwill impairment testing is performed at a consolidation level. The impairment test is performed as of year-end or if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount by comparing the fair value of a reporting unit with its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Based on the Group's impairment assessment review, the Group recorded goodwill impairment of nil, RMB267.9 million and nil for the years ended December 31, 2017, 2018 and 2019 for the goodwill from acquisition of Scepter as the volatile market environment continued to negatively impact the Group's operations and business outlook. |
Income Taxes | (u) 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. According to ASU 2015-17, the Group recognized deferred tax assets and liabilities as non-current assets and liabilities. |
Share-Based Compensation | (v) 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 | (w) 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, 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 (Loss) per Share | (x) Net Income (Loss) per Share Basic net income or loss per share is computed by dividing net income or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised into ordinary shares. Common share equivalents are excluded from the computation of the diluted net income per share in years when their effect would be anti-dilutive. Diluted net income or loss per share is computed by giving effect to all potential dilutive shares, including stock options and unvested restricted shares. To calculate the number of shares for diluted income per share, the effect of the stock options and restricted share units is computed using the treasury stock method. |
Foreign Currency Translation | (y) Foreign Currency Translation The functional currency of the Company, Jupai Investment International Limited, 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. Amounts in USD are solely for the convenience of the readers and were calculated at the rate of USD1.00 for RMB6.9618 on December 31, 2019, representing the certificated exchange rate published by the Federal Reserve Board. This presentation is not intended to be an indication of the actual USD amount for the underlying transactions, assets or liabilities. |
Comprehensive Income | (z) 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, net of tax effect. |
Recently issued accounting pronouncements | (aa) Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Group’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early application of the pending content that links to this paragraph is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Group is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the guidance, public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Group does not expect a significant impact on its consolidated financial statements. In October, 2018, the FASB issued ASU 2018-17, which amends two aspects of the related-party guidance in ASC 810. Specifically, the ASU (1) adds an elective private-company scope exception to the variable interest entity guidance for entities under common control, and (2) amends the guidance for determining whether a decision-making fee is a variable interest. The amendments require organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP). Therefore, these amendments likely will result in more decision makers not consolidating VIEs. For entities other than private companies, ASU 2018-17 is effective for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for all entities. The Group is in the process in evaluating the impact from the adoption of ASU 2018-17. In December 2019, the FASB issued ASU No. 2019-12 (“ASU 2019-12”) “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes.” ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions currently provided for in ASC 740, “Income Taxes” (“ASC 740”), and by amending certain other requirements of ASC 740. The changes resulting from ASU 2019-12 will be made on a retrospective or modified retrospective basis, depending on the specific exception or amendment. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company will adopt ASU 2019-12 effective January 1, 2021. Management is currently evaluating the effect of the adoption of ASU 2019-12 on the consolidated financial statements. Adopted in 2019 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 new guidance was effective for the Group beginning January 1, 2019 and was adopted on a modified retrospective basis. The Group elected to apply the guidance to each lease that had commenced as of the adoption date. As a result, periods prior to January 1, 2019 are presented in accordance with previous GAAP. The Group also elected a package of practical expedients which resulted in no requirement to reassess (a) whether any expired or existing contracts are or contain leases, (b) the lease classification for any expired or existing leases and (c) the recognition requirements for initial direct costs for any leases. The Group also elected a practical expedient to account for lease and non-lease components as a single lease component. Short‐term leases, which have a stated lease term of twelve months or less, have been excluded from the lease liability and ROU Assets as a result of a policy election made by the Group. Upon adoption, the Group recorded ROU assets of RMB152.3 million and lease liabilities RMB144.3 million, with no cumulative effect adjustment to retained earnings as of January 1, 2019. The guidance did not have a material impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of subsidiaries | The Company’s significant subsidiaries as of December 31, 2019 include the following: Date of Place of Percentage of Incorporation/Acquisition Incorporation Ownership Shanghai Juxiang Investment Management Consulting Co., Ltd. ("Shanghai Juxiang") July 16, 2013 PRC 100 % Baoyi Investment Consulting (Shanghai) Co., Ltd. ("Shanghai Baoyi") July 16, 2015 PRC 100 % Jupai HongKong Investment Limited("Jupai Hong Kong") August 21, 2012 Hong Kong 100 % Shanghai Baoyixuan Investment Management Center (Limited Partnership) ("Baoyixuan") December 24, 2015 PRC 100 % |
Shanghai Jupai | |
Schedule of subsidiaries | Shanghai Jupai’s significant subsidiaries as of December 31, 2019 include the following: Place of Percentage of Date of Incorporation/acquisition Incorporation Ownership Juzhou Asset Management (Shanghai) Co., Ltd. ("Juzhou") May 17, 2013 PRC 85 % Shanghai Jupeng Asset Management Co., Ltd. ("Jupeng") June 8, 2015 PRC 85 % Shanghai Jupai Yumao Fund Sales Co., Ltd. (“Yumao”) Feb 26, 2014 PRC 100 % Shanghai Yubo Investment Management Co., Ltd. (“Yubo”) July 16, 2015 PRC 100 % |
Shanghai E-Cheng | |
Schedule of subsidiaries | Shanghai E-Cheng’s significant subsidiaries as of December 31, 2019 include the following: Place of Percentage of Date of Acquisition Incorporation Ownership Shanghai Yidezhen Investment Management Center (Limited Partnership) ("Yidezhen") July 16, 2015 PRC 100 % |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Principal Accounting Policies | |
Schedule of maximum exposure to loss associated with non-consolidated VIE | As of December 31, 2018 2019 2019 RMB RMB USD Amounts due from related parties — — Investments 83,514,067 11,996,045 Maximum exposure to loss in non-consolidated VIEs 83,514,067 11,996,045 |
Schedule of amounts of variable interest entity included in the Group's consolidated financial statements | As of December 31, 2018 2019 2019 RMB RMB USD Cash and cash equivalents 524,988,367 356,891,990 51,264,327 Restricted cash 4,000,000 1,100,000 158,005 Short-term investments 4,723,612 — — Accounts receivable 1,385,145 — — Other receivables 9,393,606 5,803,135 833,568 Amounts due from related parties, net of allowance for doubtful accounts of RMB33,684,333 and RMB60,490,862 as of December 31, 2018 and 2019, respectively 62,802,168 22,231,830 3,193,403 Other current assets 4,144,131 6,327,517 908,891 Long-term investments 48,950,000 18,950,000 2,721,997 Investment in affiliates 46,276,520 86,468,304 12,420,395 Property and equipment, net 1,610,045 971,091 139,488 Intangible assets, net 24,460,706 22,623,254 3,249,627 Other non-current assets 1,070,978 5,755,331 826,702 Right-of-use assets — 1,393,451 200,157 Deferred tax assets 66,400,516 4,608,063 661,907 Total assets 800,205,794 533,123,966 76,578,467 Accrued payroll and welfare expenses 37,608,320 28,055,363 4,029,901 Income tax payable 34,282,285 19,815,543 2,846,325 Other tax payable 12,123,866 (16,501,066) (2,370,230) Amounts due to related parties-current 11,082,834 10,963,967 1,574,875 Deferred revenue — current from related parties 100,033,490 28,056,641 4,030,084 Deferred revenue — current 5,406,737 17,211,666 2,472,301 Other current liabilities 12,882,315 13,940,969 2,002,495 Deferred revenue — non-current from related parties 20,766,792 4,774,671 685,839 Deferred revenue — non-current 1,849,843 311,651 44,766 Operating Lease Liabilities—non-current — 642,309 92,262 Total liabilities 236,036,482 107,271,714 15,408,618 Years ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Net revenues 627,016,422 415,535,786 489,006,257 70,241,354 Third party 108,640,382 57,530,741 134,686,065 19,346,443 Related party 518,376,040 358,005,045 354,320,192 50,894,911 Operating cost and expenses 405,103,864 641,467,372 457,450,538 65,708,658 Net income (loss) attributable to ordinary shareholders 224,603,316 (406,544,377) (13,401,093) (1,924,947) Cash flows generated from (used in) operating activities: 174,718,889 (144,046,084) (173,478,148) (24,918,577) Cash flows (used in) generated from investing activities: (58,426,145) (17,511,862) 2,481,771 356,484 Cash flows used in financing activities: (16,152,503) (200,000) — — |
Schedule of changes in group's ownership interest | As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Net income (loss) attributable to ordinary shareholders 409,492,179 (387,744,018) (164,686,075) (23,655,674) Transfers from the noncontrolling interest Increase in Jupai's paid-in-capital for purchase shares of UP Capital Asset Management Ltd. 1,411,129 — — — Increase in Jupai's paid-in-capital for purchase of shares of Jupeng 13,305,431 — — — Net transfers from noncontrolling interest 14,716,560 — — — Change from net income (loss) attributable to ordinary shareholders and transfers from noncontrolling interest 424,208,739 (387,744,018) (164,686,075) (23,655,674) |
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 |
Schedule of disaggregation of revenue | Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD One-time commissions 1,042,685,658 739,894,527 320,817,881 46,082,605 Related party 739,901,443 524,315,293 60,723,911 8,722,444 Third party 302,784,215 215,579,234 260,093,970 37,360,161 Recurring management fee 365,045,532 436,947,202 340,732,359 48,943,141 Related party 365,045,532 436,947,202 340,732,359 48,943,141 Third party — — — — Recurring service fees 105,403,427 64,555,866 115,247,648 16,554,289 Related party 10,081,396 1,256,411 1,433,629 205,928 Third party 95,322,031 63,299,455 113,814,019 16,348,361 Other service fees 199,568,639 84,669,810 13,962,264 2,005,554 Related party 117,757,338 28,301,887 — — Third party 81,811,301 56,367,923 13,962,264 2,005,554 Total revenues 1,712,703,256 1,326,067,405 790,760,152 113,585,589 |
Summary of intangible assets estimated useful lives | Estimated Useful Lives in Years Customer contracts 3.5 yeas Internal-used software 10 years Licenses amortized Shorter of the legal rights or expected useful life |
Net Income (loss) per Share (Ta
Net Income (loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Income (loss) per Share | |
Schedule of computation of basic and diluted net income (loss) per share attributable to ordinary shareholders | Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Net income (loss) attributable to ordinary shareholders — basic 409,492,179 (387,744,018) (164,686,075) (23,655,674) Net income (loss) attributable to ordinary shareholders — diluted 409,492,179 (387,744,018) (164,686,075) (23,655,674) Weighted average number of ordinary shares outstanding — basic 195,467,414 200,480,910 201,695,899 201,695,899 Plus: share options 8,592,663 — — — Plus: restricted shares 1,611,827 — — — Weighted average number of ordinary shares outstanding — diluted 205,671,904 200,480,910 201,695,899 201,695,899 Basic net income (loss) per share 2.09 (1.93) (0.82) (0.12) Diluted net income (loss) per share 1.99 (1.93) (0.82) (0.12) |
Schedule of antidilutive securities excluded from computation of earnings per share | As of December 31, 2017 2018 2019 Share options — 9,424,471 9,145,983 Restricted shares — 1,241,352 1,182,370 Total — 10,665,823 10,328,353 |
Allowance for doubtful accoun_2
Allowance for doubtful accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for doubtful accounts | |
Schedule of allowance for accounts receivable, other receivables and amounts due from related parties | Years Ended December 31, 2017 2018 2019 RMB RMB RMB Balance as of January 1 — 3,997,417 63,211,728 Provisions for doubtful accounts 3,997,417 59,214,311 61,278,914 Write-off — — — Balance as of December 31 3,997,417 63,211,728 124,490,642 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments | |
Schedule of investment balances | As of December 31, 2018 2019 2019 RMB RMB USD Short-term investments - Debt securities - held-to-maturity investments 4,723,612 — — Total short-term investments 4,723,612 — — Long-term investments - Equity securities without readily determinable fair values 58,950,000 228,950,000 32,886,610 Total investments 63,673,612 228,950,000 32,886,610 |
Investment in affiliates (Table
Investment in affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment in affiliates | |
Schedule of balances of investment in affiliates | As of December 31 2018 2019 2019 RMB % RMB % USD % Private equity funds that the Company serves as general partner or fund manager (1) 30,487,247 — 75,750,152 — 10,880,829 — Changjiang Jupai (Shanghai) Finance Consulting Co., Ltd. (“Changjiang Jupai”) (2) 11,194,270 25.0 % 11,449,125 25.0 % 1,644,564 25.0 % Shanghai Wuling Investment Center (“Wuling Center”) 6,696,246 1.2 % 7,763,915 1.2 % 1,115,217 1.2 % Shanghai Jucheng Zhidi Co., Ltd ("Jucheng Zhidi") (3) — — 2.0 % 2.0 % Shanghai Guochen Equity Management Co., Ltd. (“Guochen”) 3,637,499 8.3 % 3,398,720 8.3 % 488,196 8.3 % Shanghai Juzhi Investment Management Co., Ltd. (“Juzhi”) 3,984,209 50.0 % 2,680,206 50.0 % 384,988 50.0 % Shanghai Jupai Hehui Asset Management Co., Ltd. ("Hehui") (4) 4,135,930 49.0 % — — — — Shanghai Jinyong Investment Management Co., Ltd. ("Jinyong") (5) 3,321,753 31.0 % — — — — Others 3,805,277 1,588,622 228,189 Total investments 67,262,431 107,541,000 15,447,298 (1) Shanghai Juxiang and Scepter 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. (2) The Group invested RMB8,000,000 for 40% equity interest in Changjiang Jupai and accounted for the investment with equity method accounting. In January 2017, the Group disposed of a 10% equity interest in Changjiang Jupai to an unrelated party for a consideration of RMB2,000,000. In December 2017, Changjiang Jupai increased the registered capital to RMB24,000,000, and attracted one more investor, whose investment diluted the Company’s shareholding into 25%. (3) The Group invested RMB5,000,000 for 2% equity interest in Shanghai Jucheng Zhidi Co., Ltd this year and accounted for the investment with equity method accounting. The main operating business is real estate development and management. (4) 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 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 re-measured at fair value and has been subsequently accounted for as equity method investment. The Group disposed of the entire investment in 2019 for RMB4.0 million (USD0.57 million). (5) Jinyong used to be a consolidated subsidiary of the Group in which the Group owned 80% equity interest. In May 2018, the Group sold 49% equity interest in Jinyong to unrelated third parties, determined the Group no longer controlled the entity and as a result deconsolidated Jinyong. The remaining 31% equity interest in Jinyong was re-measured at fair value and has been subsequently accounted for as equity method investment. In December 2018, Jinyong increased paid-in capital by RMB15 million of which the Group invested RMB4.7 million (USD0.68 million) into remain its 31% equity interest. The Group disposed of the entire investment in 2019 for RMB6.2 million (USD0.89 million). |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment, Net | |
Schedule of property and equipment | As of December 31, 2018 2019 2019 RMB RMB USD Leasehold improvements 46,392,697 58,329,033 8,378,440 Furniture, fixtures and equipment 29,534,670 30,852,788 4,431,726 Motor vehicles 4,281,395 3,701,461 531,682 Total 80,208,762 92,883,282 13,341,848 Accumulated depreciation (43,941,720) (64,601,406) (9,279,411) Deconsolidation — (447,116) (64,224) Property and equipment, net 36,267,042 27,834,760 3,998,213 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net | |
Schedule of intangible assets | As of December 31, 2018 2019 2019 RMB RMB USD Customer contracts 66,590,884 67,687,278 9,722,669 Software 36,937,043 37,670,816 5,411,074 License 942,481 942,481 135,379 Less: accumulated amortization 71,310,260 76,752,418 11,024,795 Intangible assets subject to amortization 33,160,148 29,548,157 4,244,327 License with indefinite life 26,891,801 11,733,541 1,685,418 Foreign currency translation adjustment (1,927,341) (3,031,219) (435,407) Intangible assets, net 58,124,608 38,250,479 5,494,338 |
Schedule of intangible assets | As of December 31, 2018 2019 2019 RMB RMB USD Customer contracts 66,590,884 67,687,278 9,722,669 Software 36,937,043 37,670,816 5,411,074 License 942,481 942,481 135,379 Less: accumulated amortization 71,310,260 76,752,418 11,024,795 Intangible assets subject to amortization 33,160,148 29,548,157 4,244,327 License with indefinite life 26,891,801 11,733,541 1,685,418 Foreign currency translation adjustment (1,927,341) (3,031,219) (435,407) Intangible assets, net 58,124,608 38,250,479 5,494,338 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill | |
Schedule of movement in carrying amount of goodwill | Years Ended December 31, RMB Balance as of January 1, 2018 261,621,691 Addition for acquisitions — Impairment (267,917,575) Foreign currency translation adjustments 6,592,915 Balance as of January 1, 2019 297,031 Deconsolidation (297,031) Impairment — Foreign currency translation adjustments — Balance as of December 31, 2019 — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation | |
Summary of option activity | Weighted Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value of Options Price Term Options RMB RMB Outstanding, as of January 1, 2019 9,424,471 Exercised (9,200) Forfeited (269,288) Outstanding, as of December 31, 2019 9,145,983 4.61 — Exercisable as of December 31, 2019 9,145,983 4.61 — |
Summary of restricted share activity | Weighted Average Number of Grant-date Shares Fair Value RMB Unvested, as of January 1, 2019 1,241,352 10.88 Granted 900,000 5.02 Forfeited (710,356) 11.03 Vested (248,626) 11.03 Unvested, as of December 31, 2019 1,182,370 6.49 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of tax expense | Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB USD Current Tax 141,126,316 163,676,039 15,018,507 2,157,273 Deferred Tax (18,127,807) (33,820,672) 37,926,132 5,447,748 Total 122,998,509 129,855,367 52,944,639 7,605,021 |
Schedule of reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes | Years Ended December 31, 2017 2018 2019 PRC income tax rate 25.00 % 25.00 % 25.00 % Expenses not deductible for income tax purposes 1.62 % (9.47) % (25.47) % Goodwill impairment — (44.22) % — Losses not deductible for income tax purposes — (5.40) % (12.81) % Tax-free income (1.75) % 1.10 % — Valuation allowance of deferred tax assets — (55.56) % (33.12) % Uncertain tax position impact (1.09) % — — Different tax rate of subsidiary operation in other jurisdiction (1.13) % 2.81 % 0.16 % Effective income tax rate 22.65 % (85.74) % (46.24) % |
Schedule of principal components of the deferred income tax asset and liabilities | As of December 31, 2018 2019 2019 RMB RMB USD Deferred tax assets: Deferred revenue 38,727,695 — — Accrued expenses 112,027,905 4,608,063 661,907 Tax loss carry forward 34,376,091 67,843,392 9,745,093 Gross deferred tax assets 185,131,691 72,451,455 10,407,000 Valuation allowance (84,146,463) (67,843,392) (9,745,093) Net deferred tax assets 100,985,228 4,608,063 661,907 Deferred tax liabilities: Amortization of intangible assets 198,187 — — Total deferred tax liabilities 198,187 — — |
Schedule of movement of valuation allowance | As of December 31, 2017 2018 2019 2019 RMB RMB RMB USD Balance as of January 1 — — 84,146,463 12,086,883 Additions — 84,146,463 37,227,678 5,347,421 Write-offs — — (53,530,749) (7,689,211) Balance as of December 31 — 84,146,463 67,843,392 9,745,093 |
Schedule of reconciliation of the beginning and ending amounts of uncertain tax position | RMB Uncertain tax position—January 1, 2017 5,938,816 Gross increases—accrued interest in current period — Reversal (5,938,816) Uncertain tax position—December 31, 2017, 2018 and 2019 — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Schedule of related party transactions | Revenue from Related Parties Years Ended December 31 2017 2018 2019 2019 RMB RMB RMB USD One-time commissions Funds managed by Jupai Group 739,471,960 521,493,884 58,676,277 8,428,320 Investees of shareholder of the Company 429,483 2,821,409 2,047,634 294,124 Total one-time commissions 739,901,443 524,315,293 60,723,911 8,722,444 Recurring management fee Funds managed by Jupai Group 365,045,532 436,947,202 340,732,359 48,943,141 Total recurring management fee 365,045,532 436,947,202 340,732,359 48,943,141 Recurring service fee Funds managed by Jupai Group 10,081,396 1,256,411 1,433,629 205,928 Total recurring service fee 10,081,396 1,256,411 1,433,629 205,928 Other service fee Funds managed by Jupai Group 117,757,338 28,301,887 — — Total other service fee 117,757,338 28,301,887 — — Total revenue from related parties 1,232,785,709 990,820,793 402,889,899 57,871,513 Amounts due from Related Parties As of December 31, 2018 2019 2019 RMB RMB USD Funds managed by Jupai Group 210,587,355 101,122,751 14,525,375 Investees of shareholder of the Company 54,426 — — Loan to related parties — 200,000,000 28,728,202 Loan to noncontrolling interest shareholder 37,316,266 23,187,995 3,330,747 Total amounts due from related parties 247,958,047 46,584,324 Deferred Revenue from Related Parties As of December 31, 2018 2019 2019 RMB RMB USD Funds managed by Jupai Group 133,817,091 46,971,804 6,747,077 Total deferred revenue 133,817,091 46,971,804 6,747,077 Amounts due to Related Parties As of December 31, 2018 2019 2019 RMB RMB USD Funds managed by Jupai Group 29,105,111 17,439,664 2,505,051 Investees of shareholder of the Company 2,000,000 2,000,000 287,282 Total amounts due to related parties 31,105,111 19,439,664 2,792,333 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies. | |
Schedule of future minimum lease payments under non-cancelable operating lease agreements | Years Ended December 31, RMB 2020 36,892,048 2021 23,676,676 2022 7,428,066 2023 and after 538,722 Total 68,535,512 |
Organization and Principal Ac_3
Organization and Principal Activities - Paragraphs (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Jan. 31, 2016 | Jul. 31, 2015 | Dec. 31, 2015 | |
Private placement | Ordinary shares | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Aggregate transaction value of the private placement | $ 22.9 | ||
Sina Hong Kong Limited [Member] | 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 | $ 1.83 | ||
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 | $ 1.83 | ||
Scepter Pacific Limited | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Percentage of equity interest acquired | 100.00% | ||
Scepter Pacific Limited | E-house Investment and Reckon Capital Limited | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Percentage of equity interest acquired | 100.00% | ||
Scepter Pacific Limited | E-house Investment and Reckon Capital Limited | Private placement | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Ordinary shares issued in a private placement (in shares) | 32,481,552 | ||
Aggregate transaction value of the private placement | $ 56.4 |
Organization and Principal Ac_4
Organization and Principal Activities - Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Shanghai Juxiang Investment Management Consulting Co., Ltd. ("Shanghai Juxiang") | |
Subsidiaries | |
Date of Incorporation/acquisition | Jul. 16, 2013 |
Percentage of Ownership | 100.00% |
Baoyi Investment Consulting (Shanghai) Co., Ltd. ("Baoyi") | |
Subsidiaries | |
Date of Incorporation/acquisition | Jul. 16, 2015 |
Percentage of Ownership | 100.00% |
Jupai HongKong Investment Limited ("Jupai Hong Kong") | |
Subsidiaries | |
Date of Incorporation/acquisition | Aug. 21, 2012 |
Percentage of Ownership | 100.00% |
Shanghai Baoyixuan Investment Management Center (Limited Partnership) ("Baoyixuan") | |
Subsidiaries | |
Date of Incorporation/acquisition | Dec. 24, 2015 |
Percentage of Ownership | 100.00% |
Shanghai Jupai | Juzhou Asset Management (Shanghai) Co., Ltd. ("Juzhou") | |
Subsidiaries | |
Date of Incorporation/acquisition | May 17, 2013 |
Percentage of Ownership | 85.00% |
Shanghai Jupai | Shanghai Jupeng Asset Management Co., Ltd. ("Jupeng") | |
Subsidiaries | |
Date of Incorporation/acquisition | Jun. 8, 2015 |
Percentage of Ownership | 85.00% |
Shanghai Jupai | Shanghai Jupai Yumao Fund Sales Co., Ltd. ("Yumao") | |
Subsidiaries | |
Date of Incorporation/acquisition | Feb. 26, 2014 |
Percentage of Ownership | 100.00% |
Shanghai Jupai | Shanghai Yubo Investment Management Co., Ltd. ("Yubo") | |
Subsidiaries | |
Date of Incorporation/acquisition | Jul. 16, 2015 |
Percentage of Ownership | 100.00% |
Shanghai E-Cheng | Shanghai Yidezhen Investment Management Center (Limited Partnership) ("Yidezhen") | |
Subsidiaries | |
Date of Incorporation/acquisition | Jul. 16, 2015 |
Percentage of Ownership | 100.00% |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies - VIEs (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
Variable interest entity | |||||
Amounts due from related parties | $ 0 | ¥ 136,028 | ¥ 0 | ||
Investments | 11,996,045 | 37,183,493 | 83,514,067 | ||
Maximum exposure to loss in non-consolidated VIEs | 11,996,045 | 37,319,521 | 83,514,067 | ||
Cash and cash equivalents | 102,158,306 | 1,298,565,042 | ¥ 1,527,777,270 | 711,205,698 | |
Restricted cash | 158,005 | 4,000,000 | 1,100,000 | ||
Short-term investments | 4,723,612 | ||||
Accounts receivable | 39,633,035 | ||||
Other receivables | 2,029,006 | 20,493,145 | 14,125,535 | ||
Amounts due from related parties, net of allowance for doubtful accounts of RMB33,684,333 and RMB60,490,862 as of December 31, 2018 and 2019, respectively | 13,673,619 | 199,331,694 | 95,193,003 | ||
Other current assets | 715,985 | 15,320,791 | 4,984,541 | ||
Long-term investments | 32,886,610 | 58,950,000 | 228,950,000 | ||
Investment in affiliates | 15,447,298 | 67,262,431 | 107,541,000 | ||
Property and equipment, net | 3,998,213 | 36,267,042 | 27,834,760 | ||
Other non-current assets | 2,569,166 | 27,914,021 | 17,886,020 | ||
Right-of-use assets | 9,904,062 | 68,950,101 | |||
Deferred tax assets | 661,907 | 100,985,228 | 4,608,063 | ||
Total Assets | 222,607,220 | 1,980,494,033 | 1,549,746,943 | ||
Accrued payroll and welfare expenses | 8,376,866 | 116,653,658 | 58,318,063 | ||
Income tax payable | 11,893,506 | 227,537,993 | 82,800,208 | ||
Other tax payable | 99,842 | 43,009,523 | 695,081 | ||
Amounts due to related parties-current | 2,792,333 | 31,105,111 | 19,439,664 | ||
Deferred revenue from related parties | 6,040,673 | 111,720,785 | 42,053,959 | ||
Deferred revenue | 5,124,322 | 18,949,097 | 35,674,503 | ||
Other current liabilities | 11,232,881 | 39,929,945 | 78,201,072 | ||
Deferred revenue - non-current from related parties | 706,404 | 22,096,306 | 4,917,845 | ||
Deferred revenue - non-current | 44,766 | 2,144,593 | 311,651 | ||
Operating Lease Liabilities-non-current | 4,096,468 | 28,518,789 | |||
Total Liabilities | 50,408,061 | 613,345,198 | 350,930,835 | ||
Amounts due from related parties, allowance for doubtful accounts | 43,516,516 | 96,307,907 | |||
Net revenues | 112,894,253 | ¥ 785,947,212 | 1,321,743,663 | 1,706,161,622 | |
Operating cost and expenses | 132,526,238 | 922,621,166 | 1,481,686,576 | 1,182,593,788 | |
Cash flows generated from (used in) operating activities: | (30,632,282) | (213,255,822) | (67,721,633) | 617,527,056 | |
Cash flows generated from (used in) investing activities: | (52,524,267) | (365,663,454) | (40,881,690) | (74,041,982) | |
Cash flows generated from (used in) financing activities: | 4,257 | 29,636 | (121,429,521) | (121,147,657) | |
Consolidated VIE and VIE's subsidiaries | |||||
Variable interest entity | |||||
Cash and cash equivalents | 51,264,327 | 524,988,367 | 356,891,990 | ||
Restricted cash | 158,005 | 4,000,000 | 1,100,000 | ||
Short-term investments | 4,723,612 | ||||
Accounts receivable | 1,385,145 | ||||
Other receivables | 833,568 | 9,393,606 | 5,803,135 | ||
Amounts due from related parties, net of allowance for doubtful accounts of RMB33,684,333 and RMB60,490,862 as of December 31, 2018 and 2019, respectively | 3,193,403 | 62,802,168 | 22,231,830 | ||
Other current assets | 908,891 | 4,144,131 | 6,327,517 | ||
Long-term investments | 2,721,997 | 48,950,000 | 18,950,000 | ||
Investment in affiliates | 12,420,395 | 46,276,520 | 86,468,304 | ||
Property and equipment, net | 139,488 | 1,610,045 | 971,091 | ||
Intangible assets, net | 3,249,627 | 24,460,706 | 22,623,254 | ||
Other non-current assets | 826,702 | 1,070,978 | 5,755,331 | ||
Right-of-use assets | 200,157 | 1,393,451 | |||
Deferred tax assets | 661,907 | 66,400,516 | 4,608,063 | ||
Total Assets | 76,578,467 | 800,205,794 | 533,123,966 | ||
Accrued payroll and welfare expenses | 4,029,901 | 37,608,320 | 28,055,363 | ||
Income tax payable | 2,846,325 | 34,282,285 | 19,815,543 | ||
Other tax payable | (2,370,230) | 12,123,866 | (16,501,066) | ||
Amounts due to related parties-current | 1,574,875 | 11,082,834 | 10,963,967 | ||
Deferred revenue from related parties | 4,030,084 | 100,033,490 | 28,056,641 | ||
Deferred revenue | 2,472,301 | 5,406,737 | 17,211,666 | ||
Other current liabilities | 2,002,495 | 12,882,315 | 13,940,969 | ||
Deferred revenue - non-current from related parties | 685,839 | 20,766,792 | 4,774,671 | ||
Deferred revenue - non-current | 44,766 | 1,849,843 | 311,651 | ||
Operating Lease Liabilities-non-current | 92,262 | 0 | 642,309 | ||
Total Liabilities | 15,408,618 | 236,036,482 | 107,271,714 | ||
Amounts due from related parties, allowance for doubtful accounts | 33,684,333 | ¥ 60,490,862 | |||
Net revenues | 70,241,354 | 489,006,257 | 415,535,786 | 627,016,422 | |
Operating cost and expenses | 65,708,658 | 457,450,538 | 641,467,372 | 405,103,864 | |
Net income (loss) attributable to ordinary shareholders | (1,924,947) | (13,401,093) | (406,544,377) | 224,603,316 | |
Cash flows generated from (used in) operating activities: | (24,918,577) | (173,478,148) | (144,046,084) | 174,718,889 | |
Cash flows generated from (used in) investing activities: | 356,484 | 2,481,771 | (17,511,862) | (58,426,145) | |
Cash flows generated from (used in) financing activities: | (200,000) | (16,152,503) | |||
Third party | Consolidated VIE and VIE's subsidiaries | |||||
Variable interest entity | |||||
Net revenues | 19,346,443 | 134,686,065 | 57,530,741 | 108,640,382 | |
Related party | Consolidated VIE and VIE's subsidiaries | |||||
Variable interest entity | |||||
Net revenues | $ 50,894,911 | ¥ 354,320,192 | ¥ 358,005,045 | ¥ 518,376,040 | |
Shanghai Jupai | |||||
Variable interest entity | |||||
Notice period for termination of voting rights proxy agreement with VIE | 30 days | 30 days | |||
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 Principal Accounti_5
Summary of Principal Accounting Policies - VIE percentages (Details) - item | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable interest entity | |||
Percentage of consolidated revenues contributed by VIE | 62.00% | ||
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 | 31.00% | 37.00% | |
Percentage of consolidated net income contributed by VIE | 8.00% | 105.00% | 55.00% |
Percentage of consolidated total assets contributed by VIE | 34.00% | 40.00% |
Summary of Principal Accounti_6
Summary of Principal Accounting Policies - Investments in Affiliates (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments in affiliates | |||
Impairment loss recorded from equity in affiliates | ¥ 2.7 | ¥ 104.1 | ¥ 0 |
Funds | Maximum | |||
Investments in affiliates | |||
Equity method investment, ownership percentage (in percentage) | 5.00% |
Summary of Principal Accounti_7
Summary of Principal Accounting Policies - Accounts Receivable (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts receivable | |||
Recorded allowance for doubtful accounts for the year | ¥ 6.4 | ¥ 19.7 | ¥ 0 |
Summary of Principal Accounti_8
Summary of Principal Accounting Policies - Noncontrolling Interest (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Changes in the group's ownership interest | ||||
Net income (loss) attributable to ordinary shareholders | $ (23,655,674) | ¥ (164,686,075) | ¥ (387,744,018) | ¥ 409,492,179 |
Transfers from the noncontrolling interest | 14,716,560 | |||
Change from net income (loss) attributable to ordinary shareholders and transfers from noncontrolling interest | $ (23,655,674) | ¥ (164,686,075) | ¥ (387,744,018) | 424,208,739 |
UP Capital | ||||
Changes in the group's ownership interest | ||||
Increase in Jupai's paid-in-capital for purchase shares | 1,411,129 | |||
Shanghai Jupeng Asset Management Co., Ltd. ("Jupeng") | ||||
Changes in the group's ownership interest | ||||
Increase in Jupai's paid-in-capital for purchase shares | ¥ 13,305,431 |
Summary of Principal Accounti_9
Summary of Principal Accounting Policies - PPE (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 Principal Account_10
Summary of Principal Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Principal Accounting Policies | |
Lessee, Operating Lease, Existence of Option to Extend | false |
Lessee, Operating Lease, Existence of Option to Terminate | false |
Summary of Principal Account_11
Summary of Principal Accounting Policies - Revenue Recognition (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)item | Dec. 31, 2019CNY (¥)item | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Revenue | ||||
Revenues | $ 113,585,589 | ¥ 790,760,152 | ¥ 1,326,067,405 | ¥ 1,712,703,256 |
Number of criteria to be met for recognition of revenue from one-time commissions | item | 2 | 2 | ||
Contract modification | ¥ 0 | 122,700,000 | ||
Contract liabilities | ¥ 82,957,958 | 154,910,781 | ||
Practical Expedience | ||||
Practical Expedient, Incremental cost of obtaining contract [true false] | true | true | ||
Practical Expedient, Nondisclosure of transaction price allocation to remaining performance obligation [true false] | true | true | ||
Related party | ||||
Revenue | ||||
Revenues | $ 57,871,513 | ¥ 402,889,899 | 990,820,793 | 1,232,785,709 |
Third party | ||||
Revenue | ||||
Revenues | 55,714,076 | 387,870,253 | 335,246,612 | 479,917,547 |
One-time commissions | ||||
Revenue | ||||
Revenues | 46,082,605 | 320,817,881 | 739,894,527 | 1,042,685,658 |
One-time commissions | Related party | ||||
Revenue | ||||
Revenues | 8,722,444 | 60,723,911 | 524,315,293 | 739,901,443 |
One-time commissions | Third party | ||||
Revenue | ||||
Revenues | 37,360,161 | 260,093,970 | 215,579,234 | 302,784,215 |
Recurring management fee | ||||
Revenue | ||||
Revenues | 48,943,141 | 340,732,359 | 436,947,202 | 365,045,532 |
Recurring management fee | Related party | ||||
Revenue | ||||
Revenues | 48,943,141 | 340,732,359 | 436,947,202 | 365,045,532 |
Recurring service fees | ||||
Revenue | ||||
Revenues | 16,554,289 | 115,247,648 | 64,555,866 | 105,403,427 |
Recurring service fees | Related party | ||||
Revenue | ||||
Revenues | 205,928 | 1,433,629 | 1,256,411 | 10,081,396 |
Recurring service fees | Third party | ||||
Revenue | ||||
Revenues | 16,348,361 | 113,814,019 | 63,299,455 | 95,322,031 |
Other service fees | ||||
Revenue | ||||
Revenues | 2,005,554 | 13,962,264 | 84,669,810 | 199,568,639 |
Other service fees | Related party | ||||
Revenue | ||||
Revenues | 28,301,887 | 117,757,338 | ||
Other service fees | Third party | ||||
Revenue | ||||
Revenues | $ 2,005,554 | 13,962,264 | 56,367,923 | ¥ 81,811,301 |
Contract liabilities within one year | ||||
Revenue | ||||
Contract liabilities | ¥ 77,728,462 | ¥ 130,669,882 | ||
Contract liabilities within one year | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||||
Revenue | ||||
Performance obligation, expected timing of satisfaction, period | 1 year | 1 year | ||
Contract liabilities over one year to two years | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||||
Revenue | ||||
Contract liabilities | ¥ 5,229,496 | ¥ 24,240,899 | ||
Contract liabilities over one year to two years | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Minimum | ||||
Revenue | ||||
Performance obligation, expected timing of satisfaction, period | 1 year | 1 year | ||
Contract liabilities over one year to two years | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Maximum | ||||
Revenue | ||||
Performance obligation, expected timing of satisfaction, period | 2 years | 2 years |
Summary of Principal Account_12
Summary of Principal Accounting Policies - Sales Related Tax (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Business Tax and Related Surcharges | |
VAT rate, minimum (as a percentage) | 3.00% |
VAT rate, maximum (as a percentage) | 6.00% |
Summary of Principal Account_13
Summary of Principal Accounting Policies - Selling Expenses (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selling Expenses | |||
Marketing and promotion services | ¥ 9,019,349 | ¥ 16,831,978 | ¥ 12,021,015 |
Summary of Principal Account_14
Summary of Principal Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Customer contracts | |
Intangible assets | |
Estimated useful life | 3 years 6 months |
Internal-used software | |
Intangible assets | |
Estimated useful life | 10 years |
Summary of Principal Account_15
Summary of Principal Accounting Policies - Goodwill (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | |||
Goodwill impairment | ¥ 0 | ¥ 267,917,575 | ¥ 0 |
Summary of Principal Account_16
Summary of Principal Accounting Policies - Foreign Currency Translation (Details) | Dec. 31, 2019$ / ¥ |
Foreign Currency Translation | |
Exchange rate of RMB to US$1.00 | 6.9618 |
Summary of Principal Account_17
Summary of Principal Accounting Policies - Recently issued accounting pronouncements (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Adopted in 2019 | ||||
Lease, Practical Expedients, Package | true | |||
Lease, Practical Expedient, Lessor Single Lease Component | true | true | ||
Right-of-use assets | $ 9,904,062 | ¥ 68,950,101 | ||
Retained earnings | $ (2,523,418) | ¥ (17,567,529) | ¥ 147,118,546 | |
ASU No. 2016-02, Leases (Topic 842) | Cumulative effect adjustment | ||||
Adopted in 2019 | ||||
Retained earnings | ¥ 0 | |||
ASU No. 2016-02, Leases (Topic 842) | Adjustment | ||||
Adopted in 2019 | ||||
Right-of-use assets | 152,300,000 | |||
Lease liabilities | ¥ 144,300,000 |
Net Income (loss) per Share - B
Net Income (loss) per Share - Basic and diluted (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Net income (loss) attributable to ordinary shareholders - basic | $ (23,655,674) | ¥ (164,686,075) | ¥ (387,744,018) | ¥ 409,492,179 |
Net income (loss) attributable to ordinary shareholders - diluted | $ (23,655,674) | ¥ (164,686,075) | ¥ (387,744,018) | ¥ 409,492,179 |
Weighted average number of ordinary shares outstanding - basic | 201,695,899 | 201,695,899 | 200,480,910 | 195,467,414 |
Weighted average number of ordinary shares outstanding-diluted | 201,695,899 | 201,695,899 | 200,480,910 | 205,671,904 |
Basic net income (loss) per share | (per share) | $ (0.12) | ¥ (0.82) | ¥ (1.93) | ¥ 2.09 |
Diluted net income (loss) per share | (per share) | $ (0.12) | ¥ (0.82) | ¥ (1.93) | ¥ 1.99 |
Share options | ||||
Plus: share options and restricted shares | 8,592,663 | |||
Restricted shares | ||||
Plus: share options and restricted shares | 1,611,827 |
Net Income (loss) per Share - A
Net Income (loss) per Share - Antidilutive securities excluded (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total | 10,328,353 | 10,665,823 |
Share options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total | 9,145,983 | 9,424,471 |
Restricted shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total | 1,182,370 | 1,241,352 |
Allowance for doubtful accoun_3
Allowance for doubtful accounts (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Allowance for doubtful accounts | ||||
Beginning balance | ¥ 63,211,728 | ¥ 3,997,417 | ||
Provisions for doubtful accounts | $ 8,802,165 | 61,278,914 | 59,214,311 | ¥ 3,997,417 |
Ending balance | ¥ 124,490,642 | ¥ 63,211,728 | ¥ 3,997,417 |
Investments - Table (Details)
Investments - Table (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Investments | |||
Total short-term investments | ¥ 4,723,612 | ||
Long-term investments | $ 32,886,610 | ¥ 228,950,000 | 58,950,000 |
Total investments | 32,886,610 | 228,950,000 | 63,673,612 |
Debt securities | |||
Investments | |||
Total short-term investments | 4,723,612 | ||
Equity securities | |||
Investments | |||
Long-term investments | $ 32,886,610 | ¥ 228,950,000 | ¥ 58,950,000 |
Investments - Paragraphs (Detai
Investments - Paragraphs (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments | |||
Debt securities, investment income | ¥ 0 | ¥ 717,616 | ¥ 2,809,517 |
Debt securities, gross unrecognized gain | 0 | 0 | ¥ 0 |
Investments in equity securities without readily determinable fair value | 228,950,000 | ¥ 58,950,000 | |
Equity investments without readily determinable fair values downward price adjustment | 0 | ||
Equity investments without readily determinable fair values upward price adjustment | 0 | ||
Privately-held company | |||
Investments | |||
Investments in equity securities without readily determinable fair value | 218,950,000 | ||
Private equity funds | |||
Investments | |||
Investments in equity securities without readily determinable fair value | ¥ 10,000,000 |
Investment in affiliates (Detai
Investment in affiliates (Details) | Apr. 30, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | May 31, 2018 | Dec. 31, 2017CNY (¥)shareholder | Jan. 31, 2017CNY (¥) | Sep. 30, 2014 | Aug. 31, 2014 | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2019CNY (¥) |
Investment in affiliates | ||||||||||||||
Investment in affiliates | ¥ 67,262,431 | $ 15,447,298 | ¥ 67,262,431 | ¥ 107,541,000 | ||||||||||
Consideration from disposal of investment | 1,892,146 | ¥ 13,172,739 | 218,678,718 | ¥ 3,225,000 | ||||||||||
Impairment loss recorded from equity in affiliates | 2,700,000 | 104,100,000 | ¥ 0 | |||||||||||
Changjiang Jupai | ||||||||||||||
Investment in affiliates | ||||||||||||||
Increase in paid-in capital | ¥ 24,000,000 | |||||||||||||
Number of investor attracted with the increase in capital | shareholder | 1 | |||||||||||||
Jinyong | ||||||||||||||
Investment in affiliates | ||||||||||||||
Increase in paid-in capital | 15,000,000 | |||||||||||||
Private equity funds that the Company serves as general partner or fund manager | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | 30,487,247 | 10,880,829 | 30,487,247 | 75,750,152 | ||||||||||
Changjiang Jupai | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | ¥ 11,194,270 | $ 1,644,564 | ¥ 11,194,270 | ¥ 11,449,125 | ||||||||||
Equity method investment, ownership percentage (in percentage) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 40.00% | 25.00% | |||||||
Payments to acquire equity investments | ¥ 8,000,000 | |||||||||||||
Ownership percentage disposed (in percentage) | 10.00% | |||||||||||||
Consideration from disposal of investment | ¥ 2,000,000 | |||||||||||||
Wuling Center | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | ¥ 6,696,246 | $ 1,115,217 | ¥ 6,696,246 | ¥ 7,763,915 | ||||||||||
Equity method investment, ownership percentage (in percentage) | 1.20% | 1.20% | 1.20% | 1.20% | ||||||||||
Jucheng Zhidi | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | $ 705,315 | ¥ 4,910,260 | ||||||||||||
Equity method investment, ownership percentage (in percentage) | 2.00% | 2.00% | ||||||||||||
Payments to acquire equity investments | 5,000,000 | |||||||||||||
Guochen | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | ¥ 3,637,499 | $ 488,196 | ¥ 3,637,499 | ¥ 3,398,720 | ||||||||||
Equity method investment, ownership percentage (in percentage) | 8.30% | 8.30% | 8.30% | 8.30% | ||||||||||
Juzhi | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | ¥ 3,984,209 | $ 384,988 | ¥ 3,984,209 | ¥ 2,680,206 | ||||||||||
Equity method investment, ownership percentage (in percentage) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||||
Hehui | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | ¥ 4,135,930 | ¥ 4,135,930 | ||||||||||||
Equity method investment, ownership percentage (in percentage) | 49.00% | 49.00% | ||||||||||||
Payments to acquire equity investments | 4,000,000 | |||||||||||||
Ownership percentage disposed (in percentage) | 16.00% | |||||||||||||
Consideration from disposal of investment | $ 570,000 | 4,000,000 | ||||||||||||
Ownership percentage before sale of stock (in percentage) | 65.00% | |||||||||||||
Ownership percentage after sale of stock (in percentage) | 49.00% | |||||||||||||
Jinyong | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | ¥ 3,321,753 | ¥ 3,321,753 | ||||||||||||
Equity method investment, ownership percentage (in percentage) | 31.00% | 31.00% | ||||||||||||
Payments to acquire equity investments | $ 680,000 | ¥ 4,700,000 | ||||||||||||
Ownership percentage disposed (in percentage) | 49.00% | |||||||||||||
Consideration from disposal of investment | 890,000 | ¥ 6,200,000 | ||||||||||||
Ownership percentage before sale of stock (in percentage) | 80.00% | |||||||||||||
Ownership percentage after sale of stock (in percentage) | 31.00% | |||||||||||||
Others | ||||||||||||||
Investment in affiliates | ||||||||||||||
Investment in affiliates | ¥ 3,805,277 | $ 228,189 | ¥ 3,805,277 | ¥ 1,588,622 | ||||||||||
Private equity funds of funds | Shanghai Juxiang and Scepter | Maximum | ||||||||||||||
Investment in affiliates | ||||||||||||||
Equity method investment, ownership percentage (in percentage) | 4.00% | 4.00% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Property and Equipment, Net | |||||
Total | ¥ 80,208,762 | $ 13,341,848 | ¥ 92,883,282 | ||
Accumulated depreciation | (43,941,720) | (9,279,411) | (64,601,406) | ||
Deconsolidation | (64,224) | (447,116) | |||
Property and equipment, net | 36,267,042 | 3,998,213 | 27,834,760 | ||
Depreciation expense | ¥ 20,659,686 | 13,416,578 | ¥ 10,902,651 | ||
Leasehold improvements | |||||
Property and Equipment, Net | |||||
Total | 46,392,697 | 8,378,440 | 58,329,033 | ||
Furniture, fixtures and equipment | |||||
Property and Equipment, Net | |||||
Total | 29,534,670 | 4,431,726 | 30,852,788 | ||
Motor vehicles | |||||
Property and Equipment, Net | |||||
Total | ¥ 4,281,395 | $ 531,682 | ¥ 3,701,461 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Intangible assets | |||||
Less : accumulated amortization | ¥ 71,310,260 | $ 11,024,795 | ¥ 76,752,418 | ||
Intangible assets subject to amortization, net | 33,160,148 | 4,244,327 | 29,548,157 | ||
Foreign currency translation adjustment | (1,927,341) | (435,407) | (3,031,219) | ||
Intangible assets, net | 58,124,608 | 5,494,338 | 38,250,479 | ||
Amortization expense | ¥ 5,442,158 | 22,872,976 | ¥ 21,669,520 | ||
Future amortization expense | |||||
2020 | 3,754,913 | ||||
2021 | 3,754,913 | ||||
2022 | 3,754,913 | ||||
2023 | 3,754,913 | ||||
2024 | 3,754,913 | ||||
License | |||||
Intangible assets | |||||
License with indefinite life | 26,891,801 | 1,685,418 | 11,733,541 | ||
Customer contracts | |||||
Intangible assets | |||||
Intangible assets subject to amortization, gross | 66,590,884 | 9,722,669 | 67,687,278 | ||
Software | |||||
Intangible assets | |||||
Intangible assets subject to amortization, gross | 36,937,043 | 5,411,074 | 37,670,816 | ||
License | |||||
Intangible assets | |||||
Intangible assets subject to amortization, gross | ¥ 942,481 | $ 135,379 | ¥ 942,481 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)item | Dec. 31, 2018CNY (¥)item | Dec. 31, 2017CNY (¥) | Dec. 31, 2015USD ($) | |
Movement in carrying amount of goodwill | ||||
Balance at the beginning of the period | ¥ 297,031 | ¥ 261,621,691 | ||
Impairment loss of goodwill | 0 | (267,917,575) | ¥ 0 | |
Foreign currency translation adjustments | 6,592,915 | |||
Deconsolidation | ¥ (297,031) | |||
Balance at the end of the period | ¥ 297,031 | ¥ 261,621,691 | ||
Number of Reporting Units | item | 1 | 1 | ||
UP Capital | Disposed of by sale | ||||
Movement in carrying amount of goodwill | ||||
Consideration of the disposal | ¥ 34,000,000 | |||
Scepter Pacific Limited | ||||
Movement in carrying amount of goodwill | ||||
Addition for acquisitions | $ | $ 40 | |||
Percentage of equity interest acquired | 100.00% |
Leases (Details)
Leases (Details) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Leases | |
Operating lease cost | ¥ 82.2 |
Weighted average remaining lease term | 1 year 6 months 18 days |
Weighted average discount rate | 5.70% |
Minimum | |
Leases | |
Remaining lease terms | 1 year |
Maximum | |
Leases | |
Remaining lease terms | 4 years |
Dividends (Details)
Dividends (Details) | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2018USD ($) | May 31, 2017CNY (¥) | Mar. 31, 2017USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Mar. 12, 2018USD ($) | Apr. 30, 2017CNY (¥) | Feb. 28, 2017USD ($) | |
Dividends | ||||||||
Dividend paid | ¥ 126,355,510 | ¥ 111,196,228 | ||||||
Jupai Holdings Limited | ||||||||
Dividends | ||||||||
Dividend payable | $ | $ 19,950,975 | $ 16,172,640 | ||||||
Dividend paid | $ | $ 19,950,975 | $ 16,172,640 | ||||||
Shanghai Jupeng Asset Management Co., Ltd. ("Jupeng") | ||||||||
Dividends | ||||||||
Dividend payable | ¥ 5,992,000 | |||||||
Dividend paid | ¥ 5,992,000 |
Share-Based Compensation - Auth
Share-Based Compensation - Authorized (Details) - 2014 Plan - shares | 1 Months Ended | |
Dec. 31, 2015 | Jul. 31, 2014 | |
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 |
Share-Based Compensation - Opti
Share-Based Compensation - Options (Details) | Apr. 02, 2015$ / sharesshares | Jul. 01, 2014$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2015CNY (¥)shares |
Share options | ||||||
Share-Based Compensation | ||||||
Options granted (in shares) | 1,061,600 | 12,056,000 | ||||
Expiration period of awards granted | 10 years | 10 years | ||||
Vesting period | 3 years | 3 years | ||||
Weighted Average Exercise Price | ||||||
Exercised (in dollars per share) | $ / shares | $ 1 | $ 0.48 | ||||
2014 Plan | ||||||
Share-Based Compensation | ||||||
Replacement options | 2,525,000 | |||||
2014 Plan | Share options | ||||||
Share-Based Compensation | ||||||
Options granted (in shares) | 0 | 0 | 0 | |||
Number of Options | ||||||
Outstanding at beginning of year (in shares) | 9,424,471 | |||||
Exercised (in shares) | (9,200) | |||||
Forfeited (in shares) | (269,288) | |||||
Outstanding at end of year (in shares) | 9,145,983 | 9,424,471 | ||||
Exercisable at end of year (in shares) | 9,145,983 | |||||
Weighted Average Exercise Price | ||||||
Outstanding at beginning of year (in dollars per share) | ¥ / shares | ¥ 3.92 | |||||
Exercised (in dollars per share) | ¥ / shares | 3.34 | |||||
Forfeited (in dollars per share) | ¥ / shares | 3.99 | |||||
Outstanding at end of year (in dollars per share) | ¥ / shares | 3.97 | ¥ 3.92 | ||||
Exercisable at end of year (in dollars per share) | ¥ / shares | ¥ 3.97 | |||||
Remaining Contractual Term | ||||||
Outstanding at end of year (in years) | 4 years 7 months 10 days | |||||
Exercisable at end of year (in years) | 4 years 7 months 10 days | |||||
Aggregate Intrinsic Value of Options | ||||||
Intrinsic value of options exercised | ¥ | ¥ 42,592 | ¥ 19,964,965 | ¥ 47,051,806 | |||
Other disclosures | ||||||
Unrecognized compensation expense | ¥ | 0 | |||||
Scepter Plan | ||||||
Share-Based Compensation | ||||||
Options replaced | 505,000 | |||||
Options Replacement Program | ||||||
Share-Based Compensation | ||||||
Share based compensation costs capitalized | ¥ | ¥ 13,702,194 | |||||
Compensation expense | ¥ | ¥ 0 | ¥ 1,165,543 | ¥ 9,052,789 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Shares (Details) | Jan. 04, 2019$ / sharesshares | Apr. 03, 2017$ / sharesshares | Feb. 27, 2017$ / sharesshares | Jan. 01, 2017item$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥) |
Other disclosures | |||||||
Fair value of shares vested | ¥ | ¥ 2,742,345 | ¥ 38,211,775 | ¥ 8,826,273 | ||||
Restricted shares | |||||||
Other disclosures | |||||||
Fair value of non-vested restricted shares vested | ¥ | 7,673,581 | ||||||
Compensation expense | ¥ | ¥ 9,583,596 | ¥ 16,943,399 | ¥ 21,403,150 | ||||
Restricted shares | Employee | |||||||
Share-Based Compensation | |||||||
Vesting period | 3 years | ||||||
Number of Shares | |||||||
Granted | 50,616 | ||||||
Number of individuals receiving grant | item | 1 | ||||||
Weighted Average Grant-date Fair Value | |||||||
Granted | $ / shares | $ 1.47 | ||||||
Restricted shares | Senior management | |||||||
Share-Based Compensation | |||||||
Vesting period | 3 years | 3 years | 3 years | ||||
Number of Shares | |||||||
Granted | 900,000 | 600,000 | 4,211,532 | ||||
Weighted Average Grant-date Fair Value | |||||||
Granted | $ / shares | $ 0.73 | $ 1.46 | $ 1.59 | ||||
2014 Plan | Restricted shares | |||||||
Number of Shares | |||||||
Unvested, at beginning of year | 1,241,352 | ||||||
Granted | 900,000 | ||||||
Forfeited | (710,356) | ||||||
Vested | (248,626) | ||||||
Unvested, at end of year | 1,182,370 | 1,241,352 | |||||
Weighted Average Grant-date Fair Value | |||||||
Unvested, at beginning of year | ¥ / shares | ¥ 10.88 | ||||||
Granted | ¥ / shares | 5.02 | ||||||
Forfeited | ¥ / shares | 11.03 | ||||||
Vested | ¥ / shares | 11.03 | ||||||
Unvested, at end of year | ¥ / shares | ¥ 6.49 | ¥ 10.88 | |||||
Other disclosures | |||||||
Unrecognized compensation expense | ¥ | ¥ 4,206,350 | ||||||
Weighted average remaining period over which unrecognized compensation expense will be recognized | 1 year 6 months 22 days |
Income Taxes - PRC and Hong Kon
Income Taxes - PRC and Hong Kong (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
PRC income tax rate | 25.00% | 25.00% | 25.00% |
HONG KONG | |||
Income Taxes | |||
Foreign income tax rate | 16.50% |
Income Taxes - Tax expense (Det
Income Taxes - Tax expense (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
The tax expense comprises: | ||||
Current Tax | $ 2,157,273 | ¥ 15,018,507 | ¥ 163,676,039 | ¥ 141,126,316 |
Deferred Tax | 5,447,748 | 37,926,132 | (33,820,672) | (18,127,807) |
Total | $ 7,605,021 | ¥ 52,944,639 | ¥ 129,855,367 | ¥ 122,998,509 |
Income Taxes - Rate reconciliat
Income Taxes - Rate reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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% |
Expenses not deductible for income tax purposes | (25.47%) | (9.47%) | 1.62% |
Goodwill impairment | (44.22%) | ||
Losses not deductible for income tax purposes | (12.81%) | (5.40%) | |
Tax-free income | 1.10% | (1.75%) | |
Valuation allowance of deferred tax assets | (33.12%) | (55.56%) | |
Uncertain tax position impact | (1.09%) | ||
Different tax rate of subsidiary operation in other jurisdiction | 0.16% | 2.81% | (1.13%) |
Effective income tax rate | (46.24%) | (85.74%) | 22.65% |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax asset and liabilities (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) |
Deferred tax assets: | ||||
Deferred Revenue | ¥ 38,727,695 | |||
Accrued expenses | $ 661,907 | ¥ 4,608,063 | 112,027,905 | |
Tax loss carry forward | 9,745,093 | 67,843,392 | 34,376,091 | |
Gross deferred tax assets | 10,407,000 | 72,451,455 | 185,131,691 | |
Valuation allowance | (9,745,093) | (67,843,392) | $ (12,086,883) | (84,146,463) |
Net deferred tax assets | $ 661,907 | ¥ 4,608,063 | 100,985,228 | |
Deferred tax liabilities: | ||||
Amortization of intangible assets | 198,187 | |||
Total deferred tax liabilities | ¥ 198,187 |
Income Taxes - Movement of valu
Income Taxes - Movement of valuation allowance (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Valuation Allowance [Abstract] | |||
Balance as of January 1 | $ 12,086,883 | ¥ 84,146,463 | |
Additions | 5,347,421 | 37,227,678 | ¥ 84,146,463 |
Write-offs | (7,689,211) | (53,530,749) | |
Balance as of December 31 | $ 9,745,093 | ¥ 67,843,392 | ¥ 84,146,463 |
Income Taxes - Operating loss a
Income Taxes - Operating loss and undistributed earnings (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Undistributed earnings | ||
Undistributed earnings of the Company's PRC subsidiaries | ¥ 858,300,000 | |
Provision for PRC dividend withholding tax | ¥ 0 | |
Preferential withholding tax rate of the profit distribution (as a percent) | 5.00% | |
Withholding tax rate of the profit distribution (as a percent) | 10.00% | |
Aggregate undistributed earnings of the Company's PRC VIE and its' VIE's subsidiaries | ¥ 192,100,000 | |
PRC | ||
Operating loss carryforwards | ||
Operating loss carry forward, valuation allowance | 67,843,392 | ¥ 84,146,463 |
PRC and HK | ||
Operating loss carryforwards | ||
Operating loss carry forward | 271,400,000 | |
Minimum | ||
Undistributed earnings | ||
Unrecognized deferred tax liabilities for undistributed earnings | 42,900,000 | |
Maximum | ||
Undistributed earnings | ||
Unrecognized deferred tax liabilities for undistributed earnings | ¥ 85,800,000 |
Income Taxes - Uncertain tax po
Income Taxes - Uncertain tax positions (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Uncertain tax position | ||
Uncertain tax position, beginning balance | ¥ 0 | ¥ 5,938,816 |
Gross increases - accrued interest in current period | 0 | |
Reversal | (5,938,816) | |
Uncertain tax position, ending balance | ¥ 0 | ¥ 0 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefit Plans | |||
Contributions to employee benefit plan | ¥ 89 | ¥ 131.8 | ¥ 102.6 |
Ongoing obligation to employees subsequent to contributions to employee benefit plans | ¥ 0 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - Consolidated VIE and VIE's subsidiaries - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Net Assets | ||
Required percentage of annual appropriations to general reserve fund | 10.00% | |
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 | ¥ 79,750,650 | ¥ 74,441,552 |
Share capital | 407,718,537 | 395,387,537 |
Restricted net assets, including general reserve and registered capital | ¥ 487,469,187 | ¥ 469,829,089 |
Related Party Transactions - Re
Related Party Transactions - Revenue by parties (Details) - Related party | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Related Party Transaction | ||||
Total revenue from related parties | $ 57,871,513 | ¥ 402,889,899 | ¥ 990,820,793 | ¥ 1,232,785,709 |
One-time commissions | ||||
Related Party Transaction | ||||
Total revenue from related parties | 8,722,444 | 60,723,911 | 524,315,293 | 739,901,443 |
One-time commissions | Funds managed by Jupai Group | ||||
Related Party Transaction | ||||
Total revenue from related parties | 8,428,320 | 58,676,277 | 521,493,884 | 739,471,960 |
One-time commissions | Investees of shareholder of the Company | ||||
Related Party Transaction | ||||
Total revenue from related parties | 294,124 | 2,047,634 | 2,821,409 | 429,483 |
Recurring management fee | ||||
Related Party Transaction | ||||
Total revenue from related parties | 48,943,141 | 340,732,359 | 436,947,202 | 365,045,532 |
Recurring management fee | Funds managed by Jupai Group | ||||
Related Party Transaction | ||||
Total revenue from related parties | 48,943,141 | 340,732,359 | 436,947,202 | 365,045,532 |
Recurring service fees | ||||
Related Party Transaction | ||||
Total revenue from related parties | 205,928 | 1,433,629 | 1,256,411 | 10,081,396 |
Recurring service fees | Funds managed by Jupai Group | ||||
Related Party Transaction | ||||
Total revenue from related parties | $ 205,928 | ¥ 1,433,629 | 1,256,411 | 10,081,396 |
Other service fees | ||||
Related Party Transaction | ||||
Total revenue from related parties | 28,301,887 | 117,757,338 | ||
Other service fees | Funds managed by Jupai Group | ||||
Related Party Transaction | ||||
Total revenue from related parties | ¥ 28,301,887 | ¥ 117,757,338 |
Related Party Transactions - Tr
Related Party Transactions - Transaction to related parties (Details) ¥ in Millions | Dec. 31, 2019CNY (¥) |
UP Capital | Disposed of by sale | |
Related Party Transaction | |
Consideration of the disposal | ¥ 34 |
Related Party Transactions - Du
Related Party Transactions - Due from related parties (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Related Party Transaction | |||
Amounts due from related parties | $ 46,584,324 | ¥ 324,310,746 | ¥ 247,958,047 |
Loans to related party | |||
Related Party Transaction | |||
Amounts due from related parties | 28,728,202 | 200,000,000 | |
Funds managed by Jupai Group | |||
Related Party Transaction | |||
Amounts due from related parties | 14,525,375 | 101,122,751 | 210,587,355 |
Investees of shareholder of the Company | |||
Related Party Transaction | |||
Amounts due from related parties | 54,426 | ||
Noncontrolling interest shareholder | Loans to related party | |||
Related Party Transaction | |||
Amounts due from related parties | $ 3,330,747 | ¥ 23,187,995 | ¥ 37,316,266 |
Related Party Transactions - De
Related Party Transactions - Deferred revenue and amounts due to parties (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Related Party Transaction | |||
Total deferred revenue | $ 6,747,077 | ¥ 46,971,804 | ¥ 133,817,091 |
Total amounts due to related parties | 2,792,333 | 19,439,664 | 31,105,111 |
Funds managed by Jupai Group | |||
Related Party Transaction | |||
Total deferred revenue | 6,747,077 | 46,971,804 | 133,817,091 |
Total amounts due to related parties | 2,505,051 | 17,439,664 | 29,105,111 |
Investees of shareholder of the Company | |||
Related Party Transaction | |||
Total amounts due to related parties | $ 287,282 | ¥ 2,000,000 | ¥ 2,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future minimum lease payments (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Future minimum lease payments | |||
2020 | ¥ 36,892,048 | ||
2021 | 23,676,676 | ||
2021 | 7,428,066 | ||
2023 and after | 538,722 | ||
Total | 68,535,512 | ||
Rental expenses | ¥ 82,161,925 | ¥ 94,635,510 | ¥ 83,147,890 |
Commitments and Contingencies_2
Commitments and Contingencies - Investment commitments (Details) | Dec. 31, 2019CNY (¥) |
Investment commitments | |
Capital commitment | ¥ 53,546,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Feb. 26, 2020USD ($) |
Subsequent Events | |
Share repurchase program authorized aggregate value | $ 10 |
Share repurchase program authorized period | 24 months |
Additional Financial Informat_2
Additional Financial Information of Parent Company - Schedule I Balance Sheets (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
ASSETS | ||||||
Cash and cash equivalents | $ 102,158,306 | ¥ 711,205,698 | ¥ 1,298,565,042 | ¥ 1,527,777,270 | ||
Other current assets | 715,985 | 4,984,541 | 15,320,791 | |||
Total current assets | 118,734,921 | 826,608,777 | 1,582,067,319 | |||
Investment in subsidiaries and VIE | 15,447,298 | 107,541,000 | 67,262,431 | |||
Property and equipment, net | 3,998,213 | 27,834,760 | 36,267,042 | |||
Other non-current assets | 2,569,166 | 17,886,020 | 27,914,021 | |||
Total Assets | 222,607,220 | 1,549,746,943 | 1,980,494,033 | |||
LIABILITIES | ||||||
Other current liabilities | 11,232,881 | 78,201,072 | 39,929,945 | |||
Total Liabilities | 50,408,061 | 350,930,835 | 613,345,198 | |||
Ordinary Shares (USD0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 201,479,446 and 201,737,272 shares issued and outstanding, as of December 31, 2018 and 2019, respectively) | 90,867 | 632,601 | 631,715 | |||
Additional paid-in capital | 165,237,770 | 1,150,352,309 | 1,138,107,676 | |||
Retained earnings | (2,523,418) | (17,567,529) | 147,118,546 | |||
Accumulated other comprehensive income | 7,776,965 | 54,141,670 | 53,153,406 | |||
Total Jupai shareholders' equity | 170,582,184 | 1,187,559,051 | 1,339,011,343 | |||
Total Liabilities and Equity | 222,607,220 | 1,549,746,943 | 1,980,494,033 | |||
Parent Company | ||||||
ASSETS | ||||||
Cash and cash equivalents | 5,751,905 | 40,043,612 | $ 1,497,391 | 10,424,536 | ¥ 147,457,957 | ¥ 262,609,642 |
Other current assets | 76,933 | 535,595 | 446,736 | |||
Total current assets | 5,828,838 | 40,579,207 | 10,871,272 | |||
Investment in subsidiaries and VIE | 138,423,526 | 963,676,905 | 1,144,961,352 | |||
Property and equipment, net | 32,409 | |||||
Other non-current assets | 418,307 | |||||
Loan to subsidiaries | 28,815,951 | 200,610,890 | 197,998,064 | |||
Total Assets | 173,068,315 | 1,204,867,002 | 1,354,281,404 | |||
LIABILITIES | ||||||
Other current liabilities | 610,552 | 4,250,542 | 2,424,155 | |||
Amounts due to related parties - non-current | 1,875,579 | 13,057,409 | 12,845,906 | |||
Total Liabilities | 2,486,131 | 17,307,951 | 15,270,061 | |||
Ordinary Shares (USD0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 201,479,446 and 201,737,272 shares issued and outstanding, as of December 31, 2018 and 2019, respectively) | 90,867 | 632,601 | 631,715 | |||
Additional paid-in capital | 165,237,770 | 1,150,352,309 | 1,138,107,676 | |||
Retained earnings | (2,523,418) | (17,567,529) | 147,118,546 | |||
Accumulated other comprehensive income | 7,776,965 | 54,141,670 | 53,153,406 | |||
Total Jupai shareholders' equity | 170,582,184 | 1,187,559,051 | 1,339,011,343 | |||
Total Liabilities and Equity | $ 173,068,315 | ¥ 1,204,867,002 | ¥ 1,354,281,404 |
Additional Financial Informat_3
Additional Financial Information of Parent Company - Schedule I Balance Sheets Parenthetical (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 201,737,272 | 201,479,446 |
Ordinary shares, shares outstanding | 201,737,272 | 201,479,446 |
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 | 201,737,272 | 201,479,446 |
Ordinary shares, shares outstanding | 201,737,272 | 201,479,446 |
Additional Financial Informat_4
Additional Financial Information of Parent Company - Schedule I Condensed Statements of Operations and Comprehensive Income (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Statements of Operations and Comprehensive Income | ||||
Revenues | $ 113,585,589 | ¥ 790,760,152 | ¥ 1,326,067,405 | ¥ 1,712,703,256 |
Cost of revenues | (69,198,493) | (481,746,067) | (684,558,659) | (737,507,904) |
Selling expenses | (29,701,716) | (206,777,405) | (303,170,575) | (282,171,751) |
General and administrative expenses | (38,140,638) | (265,527,496) | (274,782,664) | (204,052,576) |
Interest income | 881,467 | 6,136,600 | 3,990,096 | 11,385,895 |
Loss before taxes and loss from equity in subsidiaries and VIEs | (16,447,070) | (114,501,212) | (151,455,777) | 542,925,304 |
Income (loss) from equity in subsidiaries and VIEs | (720,369) | (5,015,063) | (113,486,155) | 2,579,447 |
Net income (loss) | (24,772,460) | (172,460,914) | (394,797,299) | 422,506,242 |
Other comprehensive (loss) income | (466,245) | (3,245,903) | 12,501,586 | (36,377,776) |
Parent Company | ||||
Condensed Statements of Operations and Comprehensive Income | ||||
Revenues | 294,674 | 2,051,459 | ||
Cost of revenues | (187,196) | (2,433,718) | ||
Selling expenses | (1,037,848) | (7,225,289) | (3,418,127) | (1,574,380) |
General and administrative expenses | (2,099,403) | (14,615,621) | (24,195,705) | (35,254,910) |
Other income (loss) | (422,050) | (2,938,226) | 2,345,741 | 290,197 |
Interest income | 1,502 | 4,862 | ||
Loss before taxes and loss from equity in subsidiaries and VIEs | (3,264,627) | (22,727,677) | (25,453,785) | (38,967,949) |
Income (loss) from equity in subsidiaries and VIEs | (20,391,047) | (141,958,398) | (362,290,233) | 448,460,128 |
Net income (loss) | (23,655,674) | (164,686,075) | (387,744,018) | 409,492,179 |
Other comprehensive (loss) income | (470,002) | (3,272,053) | 12,382,963 | (36,401,114) |
Comprehensive income (loss) attributable to ordinary shareholders | $ (24,125,676) | ¥ (167,958,128) | ¥ (375,361,055) | ¥ 373,091,065 |
Additional Financial Informat_5
Additional Financial Information of Parent Company - Schedule I Condensed Statements of Cash Flows (Details) | 12 Months Ended | |||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2016CNY (¥) | |
Adjustment to reconcile net income to net cash provided by operating activities: | ||||||||
Share-based compensation | $ 1,376,597 | ¥ 9,583,596 | ¥ 18,108,942 | ¥ 30,455,939 | ||||
Depreciation | 20,659,686 | 13,416,578 | 10,902,651 | |||||
(Loss) income from equity in subsidiaries and VIEs | 720,369 | 5,015,063 | 113,486,155 | (2,579,447) | ||||
Changes in operating assets and liabilities: | ||||||||
Other receivables | (427,334) | (2,975,011) | 9,749,600 | 48,869,539 | ||||
Other current liabilities | (1,665,214) | (11,592,885) | 12,567,773 | 45,400,912 | ||||
Net cash provided by (used in) operating activities | (30,632,282) | (213,255,822) | (67,721,633) | 617,527,056 | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment, intangible assets | (1,896,609) | (13,203,815) | (9,308,534) | (39,065,784) | ||||
Proceeds from disposal of Up Capital | 4,883,672 | 33,999,151 | 218,171 | |||||
Net cash used in investing activities | (52,524,267) | (365,663,454) | (40,881,690) | (74,041,982) | ||||
Cash flows from financing activities: | ||||||||
Exercise of options | 4,257 | 29,636 | 3,267,210 | 11,678,547 | ||||
Dividend paid to Jupai shareholders | (126,355,510) | (111,196,228) | ||||||
Net cash (used in) provided by financing activities | 4,257 | 29,636 | (121,429,521) | (121,147,657) | ||||
Effect of exchange rate changes | (1,633,158) | (11,369,704) | 4,820,616 | (17,726,303) | ||||
Cash and cash equivalents - beginning of year | 1,298,565,042 | 1,527,777,270 | ||||||
Cash and cash equivalents - end of year | 102,158,306 | 711,205,698 | 1,298,565,042 | 1,527,777,270 | ||||
Cash, cash equivalents and restricted cash | 102,316,311 | $ 187,101,761 | 1,527,777,270 | ¥ 712,305,698 | ¥ 1,302,565,042 | ¥ 1,123,166,156 | ||
Parent Company | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | (23,655,674) | (164,686,075) | (387,744,018) | 409,492,179 | ||||
Adjustment to reconcile net income to net cash provided by operating activities: | ||||||||
Share-based compensation | 1,376,597 | 9,583,596 | 18,108,942 | 30,455,939 | ||||
Depreciation | 4,655 | 32,409 | 20,227 | 10,890 | ||||
(Loss) income from equity in subsidiaries and VIEs | 20,391,047 | 141,958,398 | 362,290,233 | (448,460,128) | ||||
Changes in operating assets and liabilities: | ||||||||
Other receivables | 20,811,000 | |||||||
Other current assets | (12,764) | (88,859) | 222,416 | 527,481 | ||||
Other non-current assets | 60,086 | 418,307 | (84,950) | (333,357) | ||||
Other current liabilities | 262,344 | 1,826,388 | 431,312 | 1,349,551 | ||||
Net cash provided by (used in) operating activities | (1,573,709) | (10,955,836) | (6,755,838) | 13,853,555 | ||||
Cash flows from investing activities: | ||||||||
Collection of loan to subsidiaries | 92,955 | 647,137 | 5,572,843 | 1,896,887 | ||||
Purchases of property and equipment, intangible assets | (63,527) | |||||||
Proceeds from disposal of Up Capital | 4,883,672 | 33,999,151 | ||||||
Net cash used in investing activities | 4,976,627 | 34,646,288 | 5,572,843 | (19,447,915) | ||||
Cash flows from financing activities: | ||||||||
Exercise of options | 4,257 | 29,636 | 3,267,210 | 11,678,547 | ||||
Dividend paid to Jupai shareholders | (126,355,510) | (111,196,228) | ||||||
Net cash (used in) provided by financing activities | 4,257 | 29,636 | (123,088,300) | (99,517,681) | ||||
Effect of exchange rate changes | 847,339 | 5,898,988 | (12,762,126) | (10,039,644) | ||||
Net (decrease) increase in cash and cash equivalents | 4,254,514 | 29,619,076 | (137,033,421) | (115,151,685) | ||||
Cash and cash equivalents - beginning of year | 1,497,391 | 10,424,536 | 147,457,957 | 262,609,642 | ||||
Cash and cash equivalents - end of year | $ 5,751,905 | ¥ 40,043,612 | $ 1,497,391 | ¥ 10,424,536 | 147,457,957 | |||
Parent Company | UP Capital | ||||||||
Cash flows from investing activities: | ||||||||
Investment in acquiree | (17,172,335) | |||||||
Parent Company | Non-linear | ||||||||
Cash flows from investing activities: | ||||||||
Investment in acquiree | ¥ (4,108,940) |
Additional Financial Informat_6
Additional Financial Information of Parent Company - Schedule I Notes (Details) | Dec. 31, 2019$ / ¥ |
Schedule I | |
Foreign Currency Exchange Rate, Translation | 6.9618 |
Parent Company | |
Schedule I | |
Foreign Currency Exchange Rate, Translation | 6.9618 |