Maase Inc (MAAS) 2023 Q2 法說會逐字稿

Ladies and gentlemen, welcome to Puyi Inc's first half of the fiscal year 2023 earnings conference call. (Operator Instructions) For your information, today's conference call is being recorded. This conference call is also being broadcasted live over the Internet and will be available for replay purposes on the company's website. I'd like to turn the meeting over to your first speaker today, Ms. Jing He, Puyi's General Manager of Financial Reporting Department. Thank you. Please go ahead.

女士們、先生們，歡迎參加溥儀集團2023財年上半年財報電話會議。 （操作員說明）僅供參考，我們正在錄製今天的電話會議。此次電話會議還將通過互聯網進行現場直播，並將在公司網站上進行重播。今天的會議請第一位發言者，溥儀財務報告部總經理何靜女士負責。謝謝。請繼續。

Thanks, operator. Good evening. Welcome to our earnings conference call for the first half of the fiscal year 2023. Our half-year report on Form 6-K has been uploaded to the website of US Securities and Exchange Commission earlier today, and is also available on our IR website.

謝謝，接線員。晚上好。歡迎參加我們的 2023 財年上半年收益電話會議。我們的 6-K 表格半年報告已於今天早些時候上傳到美國證券交易委員會的網站，也可以在我們的 IR 網站上獲取。

Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The accuracy of these statements may be impacted by a number of risks and uncertainties and could cause our actual results to differ materially from those projected or anticipated. Such risks and uncertainties include but not limited to those outlined in our filings with the SEC, including our 20-F. We do not undertake any obligation to update this forward-looking information except as required under the applicable law.

在我們繼續之前，請注意，今天的討論將包含根據1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。這些陳述的準確性可能會受到許多風險和不確定性的影響，以及可能導致我們的實際結果與預計或預期的結果存在重大差異。此類風險和不確定性包括但不限於我們向 SEC 提交的文件中概述的風險和不確定性，包括我們的 20-F.除適用法律要求外，我們不承擔更新此前瞻性信息的任何義務。

Joining us today are our Chairman of the Board and Chief Executive Officer, Mr. Yong Ren; and Chief Financial Officer, Mr. Anlin Hu. Mr. Ren will walk you through our business and financial conditions of our first half of the fiscal year 2023, and he, together with Mr. Hu, will answer your questions after the prepared remarks.

今天加入我們的是我們的董事會主席兼首席執行官任勇先生；胡安林先生和首席財務官。任先生將向您介紹我們2023財年上半年的業務和財務狀況，他將與胡先生一起在準備好的發言後回答您的問題。

Now I will turn the call over to Mr. Ren.

現在我把電話轉給任先生。

(interpreted) Good evening, everyone. Thank you for joining us today on the conference call for the first half of the fiscal year 2023. Here with me is our Chief Financial Officer, Mr. Anlin Hu. We will begin today's call with an overview of our financial and operational results for the first half of the fiscal year 2023, followed by a brief discussion of our business outlook for the future. We will then open the floor for questions.

（翻譯）大家晚上好。感謝您今天參加我們 2023 財年上半年的電話會議。與我一起參加的是我們的首席財務官胡安林先生。我們將在今天的電話會議中概述 2023 財年上半年的財務和運營業績，然後簡要討論我們未來的業務前景。然後我們將開始提問。

First of all, let's take a look at our business development in the reporting period. In the first half of the fiscal year 2023, due to the impact of COVID-19 pandemic, China's economy has not recovered prominently and the capital markets have been volatile, which led to weak investment sentiments and poor investor experience.

首先我們看一下報告期內我們的業務發展情況。 2023財年上半年，受新冠肺炎（COVID-19）疫情影響，中國經濟尚未明顯復甦，資本市場波動較大，導致投資情緒疲軟，投資者體驗不佳。

Despite dismal conditions, our management team strategically maintained our focus to reduce costs and increase efficiency, while strengthened the internal training to enhance professional skills. We were able to reduce our operating expenses by 28% period on period.

儘管形勢嚴峻，我們的管理團隊仍戰略性地堅持降本增效，同時加強內部培訓，提升專業技能。我們的運營費用同比減少了 28%。

Furthermore, we continue to strategically reinforce our focus on wealth management and inheritance service for wealthy and high-net-worth clients. In particular, our trust consulting service achieved great progress with the number of completed trust consulting service projects increased by more than five times period on period. Our main business operations and strategies during the reporting period are listed as follows.

此外，我們繼續戰略性地加強對富裕和高淨值客戶的財富管理和繼承服務的關注。尤其是信託諮詢服務取得長足發展，完成信託諮詢服務項目數量同比增長五倍以上。報告期內，我們的主要業務經營情況及戰略如下。

First, we diversify our product offerings based on client needs and stabilize our fund distribution business. The retail fund distribution business is the foundation of our business and the main source of our income. Although the A-share secondary market had an overall poor performance, the (inaudible) of most of our sub-products in the current period outperformed the bench index.

首先，我們根據客戶需求豐富產品種類，穩定基金分銷業務。零售基金代銷業務是我們的業務基礎，也是我們收入的主要來源。雖然A股二級市場整體表現不佳，但我們大部分子產品（聽不清）本期表現均優於基準指數。

As we continue to focus on changes in client mix and through the clients' emotions through higher frequency of investor education and managed to improve the performance of our fund product portfolios by having our own investment and research capacity.

我們持續關注客戶結構的變化，通過提高投資者教育頻率，深入了解客戶情緒，並通過自身的投資和研究能力，提升基金產品組合的業績。

In terms of product investment and research, we further expanded our publicly raised fund product portfolio by increasing the number of public fund companies we cooperate with, which increased from 89 as of June 30, 2022, to 109 as of December 31, 2022. Our publicly raised fund product offerings currently covers most of the products over in the market.

在產品投資和研究方面，我們通過增加合作的公募基金公司數量，進一步擴大公募基金產品組合，由截至2022年6月30日的89家增至截至2022年12月31日的109家。公募基金產品種類目前涵蓋了市場上的大部分產品。

In addition, we added two new fund product portfolios according to the needs of clients in the market, including automatic redeem product, a smart product which automatically redeems when reaching the target profit rate, and a smart regular investment product, a smart product which periodically advise investor to contribute different amounts of investments based on the current market conditions.

此外，我們根據市場客戶的需求，新增了兩款基金產品組合，包括自動贖回產品、達到目標收益率自動贖回的智能產品、智能定期投資產品、定期投資的智能產品。建議投資者根據當前市場狀況進行不同金額的投資。

Through the new product training and new business strategy, these two differentiated and customized products meet the needs of clients and stabilize the balance of publicly raised fund products. For our privately raised fund products, we further enhanced our private fund product strategies.

通過新產品培訓和新業務策略，這兩款差異化、定制化的產品滿足了客戶的需求，穩定了公募基金產品的平衡。私募基金產品方面，我們進一步完善私募基金產品策略。

For example, we timely launched convertible bonds and commodities future strategies according to market demand, and was able to capture high-yield opportunities for clients in volatile markets. Second, we rigorously developed our family trust business, such as insurance premium trust products, and the number of completed trust consulting service projects reached a new high.

例如，我們根據市場需求及時推出可轉債和大宗商品期貨策略，為客戶在波動的市場中捕捉高收益機會。二是大力發展保費信託產品等家族信託業務，完成信託諮詢服務項目數量再創新高。

During this reporting period, the number of completed trust consulting service increased by more than five times over the same period in the fiscal year 2022. At the same time, we successfully established an all-encompassing service system for wealthy and high-net-worth clients, including, but not limited to, tax, law, education, and overseas asset allocation service. We believe that for the insurance premium trust and family trust service, our ability in providing service to wealthy and high-net-worth clients will improve significantly.

報告期內，完成信託諮詢服務數量較2022財年同期增長五倍以上。同時，我們成功建立了針對富人和高淨值人群的全方位服務體系。客戶包括但不限於稅務、法律、教育、海外資產配置服務。我們相信，在保費信託和家族信託服務方面，我們為富裕和高淨值客戶提供服務的能力將會顯著提高。

Third, we upgraded the institutional business transaction platform and rigorously expanded business with institutional clients. In terms of the construction of institutional business transaction platform, we achieved multiple upgrades during this period, enriching the service experience of financial institutions, especially small and medium sized banks.

三是升級機構業務交易平台，大力拓展機構客戶業務。在機構業務交易平台建設方面，我們在此期間實現了多重升級，豐富了金融機構特別是中小銀行的服務體驗。

In this reporting period, we successfully launched our business in financial institution market, currently covering most kinds of financial institutions, including banks, insurance companies, security companies, future companies, and trust companies. In this reporting period, the transaction value of public rates fund by institutional clients exceeds RMB2 billion, USD0.3 billion, far [exceeding] the transaction value for the entire 2022 fiscal year.

報告期內，我們成功開展金融機構市場業務，目前已覆蓋銀行、保險公司、證券公司、期貨公司、信託公司等大部分金融機構。本報告期內，機構客戶公債基金交易額超過20億元人民幣、3億美元，遠超2022財年全年交易額。

Fourth, we continuously optimize the IT system to provide comprehensive service across all business lines. During this reporting period, we made certain technological advancements, including upgrading the Puyi Fund App, launching an independent operating system, and optimizing system performance.

四是不斷優化IT系統，提供全業務綜合服務。報告期內，我們取得了一定的技術進步，包括升級普益基金App、推出獨立操作系統、優化系統性能等。

First, we established a proprietary investment consulting system, which is embedded into the Puyi Fund App according, to the new regulatory requirements and connected to compliance portal of our investment consulting system to other fund companies' system to ensure compliance with relevant regulations in online transactions of publicly raised fund product portfolios.

首先，我們建立了自有的投資諮詢系統，根據新的監管要求，嵌入普益基金App，並通過我們的投資諮詢系統的合規門戶與其他基金公司的系統連接，確保在線交易符合相關規定。公募基金產品組合。

Second, we further upgraded our core transaction system and institutional business system to improve our controlling and the flexibility of our operational system infrastructure. Third, we progressed in the standardization of our systems of family office business. The family office service and the entire life cycle of trust management can now be conducted entirely online, greatly improving the operational efficiency of our family office business.

二是進一步升級核心交易系統和機構業務系統，提高運營系統基礎設施的控制力和靈活性。三是推進家族辦公室業務制度規範化建設。家族辦公室服務和信託管理的全生命週期現在可以完全在線進行，大大提高了家族辦公室業務的運營效率。

And fourth, we further optimized the [ifinancialplanner app] and Puyi business school app. We launched an insurance policy [diagnose] and fund healthcare diagnose functions for the ifinancialplanner app to better empower financial advisors. We upgraded the function of the Puyi business school app to satisfy the requirements of being an independently operating commercial application.

第四，我們進一步優化了【ifancialplanner app】和溥儀商學院app。我們為 ifancialplanner 應用程序推出了保單【診斷】和基金醫療保健診斷功能，以更好地為財務顧問提供支持。我們對溥儀商學院APP進行了功能升級，以滿足作為獨立運營的商業應用的要求。

Fifth, we strictly controlled costs and expenses and achieved success in organizational structure optimization. Despite the yet-to-be-improved external business environment, the management continue to reduce costs and increase efficiency in this reporting period. For our branch office, we further shrinked the operating space and reduced the workplace expense.

五是嚴控成本費用，組織架構優化取得成效。儘管外部經營環境尚未改善，但報告期內管理層繼續降本增效​​。對於我們的分公司，我們進一步縮小了經營空間，降低了工作場所費用。

At the same time, we were able to decrease our marketing expenses significantly as we changed our marketing initiatives for publicly raised fund product portfolios from stimulating the growth of new accounts to stimulating the growth of new investments.

同時，我們將公募基金產品組合的營銷舉措從刺激新賬戶增長轉變為刺激新投資增長，營銷費用大幅下降。

Next, I will briefly discuss our financial conditions for the first half of the fiscal year 2023. For the first half of the fiscal year 2023, net revenues decreased period on period by 32.6% from RMB101.5 million to RMB68.4 million, USD9.9 million. Now let's turn to each individual business line.

接下來，我將簡要討論一下我們2023財年上半年的財務狀況。2023財年上半年，淨收入同比下降32.6%，從人民幣1.015億元降至人民幣6840萬元，9美元90 萬。現在讓我們來看看每個單獨的業務線。

First for our wealth management service. Net revenues generated from our wealth management service decreased period on period by 43.2% from RMB94.2 million to RMB53.5 million, USD7.8 million in particular. Net revenues generated from the distribution of privately raised fund products for the reporting period were RMB17.8 million, USD2.6 million, representing a 54.1% period-on-period decrease from RMB38.8 million.

首先是我們的財富管理服務。財富管理服務淨收入同比下降43.2%，從人民幣9,420萬元降至人民幣5,350萬元，其中780萬美元。報告期內私募基金產品銷售淨收入為人民幣1,780萬元（260萬美元），較上期人民幣3,880萬元下降54.1%。

The decrease was primarily due to, first, the fact that investors were affected by the volatile market with increased uncertainty of the future, leading to a negative sentiment for privately raised fund products and other high-risk products, and their willingness to redeem funds has then increased. Therefore, during the reporting period, the transaction value and outstanding daily balance of our privately raised fund products decreased, resulting in a decrease in commission income, including management fees.

下降的主要原因是，一是投資者受市場波動影響，未來不確定性增加，導致對私募基金產品等高風險產品的負面情緒，贖回基金意願下降。然後增加。因此，報告期內，我們私募基金產品的交易金額和日餘額下降，導致包括管理費在內的佣金收入減少。

And second, performance-based fees of RMB1.8 million recognized in the first half of the fiscal year 2023 as compared to RMB3 million in the first half of the fiscal year 2022, representing a 41.7% decrease. And net revenues generated from the distribution of publicly raised fund products for the reporting period were RMB45.8 million, USD5.2 million, representing a 35.5% period-on-period decrease from RMB55.5 million.

其次，2023財年上半年確認的績效費用為180萬元人民幣，而2022財年上半年為300萬元人民幣，下降了41.7%。報告期內公募基金產品銷售淨收入為人民幣4,580萬元（520萬美元），較上期人民幣5,550萬元下降35.5%。

The decrease was primarily due to the influence of global geopolitics and COVID-19 related restrictive measures, which led to the long-term depression of the A-share market and the low investment confidence of the investors, resulting in a decrease in transaction value of publicly raised fund products and a reduction in commission income.

下降的主要原因是受全球地緣政治和COVID-19相關限制措施的影響，導致A股市場長期低迷，投資者投資信心低迷，導致交易金額下降。公募基金產品佣金收入減少。

Currently, the COVID-19 control measures have been relaxed, and the domestic economic and financial market have entered a recovery period. We are confident that with the recovery of China economy, the transaction value of publicly raised fund products will be restored soon.

目前，COVID-19管控措施已有所放鬆，國內經濟和金融市場已進入復甦期。我們相信，隨著中國經濟的複蘇，公募基金產品的交易價值將很快恢復。

Second, for our asset management service, net revenues generated from asset management service for the reporting period were RMB1.2 million, USD0.2 million, representing a 68.7% period-on-period decrease from RMB3.7 million. The decrease was primarily due to a 95.7% decrease in performance-based fees generated by our actively managed [fund of funds] to RMB76,000, USD11,000, for the first half of the fiscal year 2023 from RMB1.8 million for the same period of the fiscal year 2022.

其次，資產管理服務方面，報告期資產管理服務淨收入為人民幣120萬元（20萬美元），較上期人民幣370萬元下降68.7%。這一下降主要是由於我們主動管理的[基金中的基金]產生的績效費用從上年同期的人民幣180萬元下降至2023財年上半年的人民幣76,000元（11,000美元）。 2022 財年同期。

Third, for our insurance consulting service, net revenues generated from our insurance consulting service for the reporting period were RMB7 million, USD1 million, representing a 112.7% period-on-period increase from RMB3.3 million. The increase was primarily due to the fact that we provided consulting services to more clients and the insurance premium had increased accordingly.

三是保險諮詢服務方面，報告期內保險諮詢服務淨收入為人民幣700萬元（100萬美元），較上年同期的人民幣330萬元增長112.7%。增加的主要原因是我們向更多客戶提供諮詢服務，保費相應增加。

Last, for our other service, net revenues generated from other services for the reporting period were RMB6.7 million, USD1 million, representing a 2,485.8% period-on-period increase from RMB0.3 million. Revenues from other services in this reporting period mainly come from consulting services related to trust and family wealth inheritance service provided to clients.

最後，我們的其他服務，報告期內其他服務產生的淨收入為人民幣670萬元（100萬美元），較上期人民幣30萬元增長2,485.8%。本報告期其他服務收入主要來自為客戶提供信託相關諮詢服務及家族財富傳承服務。

Last but not the least, let's elaborate on our strategic plans and our outlooks for the future. In light of the relaxation of the pandemic prevention and control policy at the end of 2022, we believe that China's economy will experience an upward growth in 2023. The introduction of registration-based IPO system will also reform China's capital market ecosystem. As investor confidence recovers [in trust], we believe that the market wealth management industry is expected to improve continuously in 2023.

最後但並非最不重要的一點是，讓我們詳細闡述一下我們的戰略計劃和對未來的展望。鑑於2022年底疫情防控政策有所放鬆，我們認為2023年中國經濟將出現向上增長。註冊制的推出也將改革中國資本市場生態。隨著投資者信心的恢復，我們認為2023年市場理財行業有望持續向好。

We will focus on the following four main strategies. First, to stabilize our core business and capitalize on the trend of economic recovery. Distribution of publicly raised fund product portfolios is our core and main business. The outstanding balance of our publicly raised fund product portfolios declined in the past two years due to the impact of the pandemic and the sluggish capital market caused by the economic downturn.

我們將重點關注以下四個主要策略。一是穩主業，順應經濟復甦趨勢。公募基金產品組合分銷是我們的核心和主營業務。受疫情影響以及經濟下行導致的資本市場低迷，我們的公募基金產品組合餘額近兩年有所下降。

Our management emphasized to seize the opportunity and capitalize on the economic recovery in 2023, further strengthen our investment and research capabilities of public funds, enhance service operations capabilities, timely devote efforts in marketing and promotion of public funds, and seize new growth opportunities while maintaining regular business operations.

管理層強調，要抓住2023年經濟復甦機遇，進一步強化公募基金投研能力，提升服務運營能力，適時加大公募基金營銷推廣力度，在保持業績增長的同時，抓住新的增長機遇。正常的商業運作。

Second, to further explore the needs of family trust service capabilities. We will continue to improve the quality of our family trust service for wealthy and high-net-worth clients by increasing operational efficiencies for our self-developed family office system, launch and optimize our product and service according to client needs, scale our client base through expanding corporate channels, and strengthen our company's B2B service capabilities through optimization of IT systems.

二是進一步挖掘家族信託服務能力需求。我們將通過提高自主研發的家族辦公室系統的運營效率，不斷提高為富裕和高淨值客戶提供的家族信託服務質量，根據客戶需求推出和優化我們的產品和服務，擴大我們的客戶群通過拓展企業渠道，通過優化IT系統強化我公司的B2B服務能力。

Further, we'll pay attention to the needs of families of wealthy and high-net-worth clients, observe the upstream and downstream wealth management index change, seek opportunities for business collaborations and mergers and acquisitions, and try to provide more (technical difficulty) path for potential future business opportunities.

此外，我們還將關注富裕家庭和高淨值客戶的需求，觀察上下游財富管理指數變化，尋求業務合作和併購機會，努力為客戶提供更多（技術難度）的服務。 ）未來潛在商機的路徑。

Despite fierce competition, leveraging our extensive existing client base of banks and insurance companies, we hold great advantage and opportunities against our industry peers. In the future, by adopting an investor's point of view, combined with our investment research capabilities and professional team at Puyi family office department, we'll expect to empower our institutional clients, especially banks and insurance company clients, and treat them sincerely with an open mind and achieve a win-win situation, ultimately increasing our market share.

儘管競爭激烈，但憑藉我們現有的銀行和保險公司廣泛的客戶群，我們相對於業內同行擁有巨大的優勢和機遇。未來，我們希望以投資者的角度，結合我們的投研能力和溥儀家族辦公室部門的專業團隊，賦能機構客戶，特別是銀行和保險公司客戶，以誠摯的態度對待他們。開放心態，實現雙贏，最終提高我們的市場份額。

Fourth, to develop a [self-controlled] IT infrastructure to assist in the continuous improvement of our core business.

第四，建設[自主可控]IT基礎設施，協助核心業務持續改進。

In 2023, we will concentrate our resources on upgrading the Puyi Fund App, institutional business system, and family office business system. First, to further improve the Puyi Fund App as a one-stop comprehensive investment advisory service platform, we will upgrade its intelligent investment consulting system through digitalization and AI, integrating it to the client's entire lifecycle. Second, for the institutional business system, we will timely optimize and iterate its functions to keep up with leading platforms at the soonest.

2023年，我們將集中資源升級普益基金App、機構業務系統、家族辦公室業務系統。一是進一步完善普益基金APP一站式綜合投顧服務平台，通過數字化和人工智能升級智能投顧系統，融入客戶全生命週期。其次，對於機構業務系統，我們將及時優化和迭代功能，盡快跟上領先平台的步伐。

And third, for the family office business systems, we'll upgrade it from three aspects. First, to integrate our IT infrastructure with the trust company system and its information network to further improve the efficiency in providing our trust consulting service.

第三，對於家族辦公室的業務系統，我們會從三個方面進行升級。一是將信息技術基礎設施與信託公司係統及其信息網絡相融合，進一步提高信託諮詢服務效率。

Second, to strengthen our digitalization construction to obtain real-time data analytics of our trust service progress and status. And third, to optimize and improve our IT infrastructure to better support the development of the family office business.

二是加強數字化建設，實時掌握信託服務進度和狀態的數據分析。三是優化完善IT基礎設施，更好支持家族辦公室業務發展。

Past a fallen ship, one thousand sail onward; for a sick tree, ten thousand thrive by spring. Post-COVID era, the wealth management industry is expected to embrace a long-term sustainable growth cycle. Puyi management will pursue a business strategy of stable growth, while calmly responding to risks and challenges and seizing market opportunities. We are very confident in the future development of our company.

逝舟已過，千帆前行；一棵病樹，到春天萬棵發芽。後疫情時代，財富管理行業有望迎來長期可持續增長周期。溥儀管理層將奉行穩健增長的經營策略，冷靜應對風險挑戰，抓住市場機遇。我們對公司未來的發展充滿信心。

That ends with our prepared remarks. Now we will open for questions. Operator, please.

我們準備好的發言結束了。現在我們將開放提問。接線員，請說。

(Operator Instructions) At this time, I would now like to turn back to Jing He for closing remarks.

（操作員指示） 現在我想請何靜做結束語。

Thank you. Seems no questions at this time. It seems like our line dropped off for a second. So if you're interested in the free full transcript, we'll be upload it on our website after this call. Please go ahead and see if you are interested. And we have no other comments at this time.

謝謝。目前似乎沒有問題。我們的線路好像有一秒鐘掉線了。因此，如果您對免費的完整成績單感興趣，我們將在本次電話會議後將其上傳到我們的網站上。請繼續看看您是否有興趣。目前我們沒有其他評論。

Thank you, everyone, for attending our fiscal year 2023 earnings call. If you have any further questions, please feel free to contact us. Thank you very much, operator.

感謝大家參加我們的 2023 財年財報電話會議。如果您還有任何疑問，請隨時與我們聯繫。非常感謝您，接線員。

This now concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

該文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。