Ladies and gentlemen, welcome to Puyi Inc. first half of the fiscal year 2023 earnings conference call. At this time, all participants are in listen only mode. Following management prepared remarks, there will be a Q&A session. For your information, today's conference call is being recorded. This conference call is also being broadcasted live over the internet and will be available for replay purposes on the company's website. I'd like to turn the meeting over to your first speaker today, Ms. Jing He, Puyi's General Manager of Financial Reporting Department. Thank you. Please go ahead. 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 U.S. Securities and Exchange Commission earlier today. It's also available on our IR website. Before we continue, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The accuracy of these statements may be impacted by a number of risks and uncertainties that could cause our actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but not limited to, those 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 laws. 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. Now I will turn the call over to Mr. Ren. 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. 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 economic has not recovered permanently, and the capital markets have been volatile, which led to weak investment sentiments and poor investor experience. Despite dismal conditions, our management team strategically maintain our focus to reduce costs and increase efficiency, while strengthening the internal training to enhance professional skills. We were able to reduce our operating expenses by 28% period on period. 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 5 x period on period. Our main business operations and strategies during the reporting period are listed as follows. 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 yield of most of our fund products in the current period outperformed the bench index. As we continue to focus on changes in client needs and suit the clients' emotions through higher frequency of investor education, and managed to improve the performance of our fund product portfolios by enhancing our own investment and research capacity. In terms of product investment and research, we further expanded our public 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 public raised fund product offering currently covers most of the products offered in the market. In addition, we added two new fund product portfolios according to the needs of clients in the market, including automatic redemption 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. Through the new products bringing new business strategy, these two differentiate and customized products meet the needs of clients and stabilize the balance of public raised fund product. For our privately raised fund products, we further enhance our private fund product strategies. For example, we timely launch convertible bonds and commodity futures strategies according to market demand, and was able to capture high yield opportunities for clients in volatile markets. Second, we vigorously develop our family trust business, such as insurance premium trust products, and the number of completed trust consulting service projects reached a new high. 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 through the insurance premium trust and family trust service, our ability in providing service to wealthy and high net worth clients will improve significantly. Fourth, we upgraded the institutional business transaction platform and vigorously 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. In this reporting period, we successfully launched our business in financial institution market, currently covering most types of financial institutions, including banks, insurance companies, security companies, future companies, and trust companies. In this reporting period, the transaction value of public raised fund by institutional clients exceeds RMB 2 billion, $0.3 billion, far exceeding the transaction value for the entire 2022 fiscal year. Fourth, we continuously optimize the IT system to provide comprehensive service across all business lines. 本 期 科 技 工 作 可 概 括 为 投 顾 化 加 自 主 可 控 ， 加 精 益 求 精 ， 主 要 包 括 以 下. During this reporting period, we make certain technological advancements, including upgrading the Puyi Fund app, launching an independent operating system and optimizing system performance. 第 一, 浦银基金 平 台 根 据 监 管 新 规 的 要 求, 自 研 投 顾 化 系 统 完 成 了 投 顾 化 改 造, 实 现 了 与 多 家 基 金 公 司 投 顾 系 统 对 接. First, we establish a proper proprietary investment consulting system, which is embedded into the fund Puyi Fund app according to the new regulatory requirement and connected the compliance portal of our investment consulting system to other fund companies system to ensure compliance with relevant regulations in online transactions of public raised fund product portfolios. 第 二 ， 进 一 步 推 进 自 主 核 心 系 统 和 机 构 业 务 系 统 自 研 工 作 ， 提 升 了 自 主 可 控 性 和 稳 定 灵 活 性 的 。 Second, we further upgraded our core transaction system and institutional business system to improve our controlling and the flexibility of our operational system infrastructure. 第 三 ， 进 一 步 推 进 家 办 业 务 系 统 项 目 ， 目 前 已 实 现 了 家 办 业 务 流 程 线 上 化 和 信 托 生 命 周 期 的 全 流 程 管 理 ， 极 大 提 升 家 办 业 务 的 运 营 效 率 。 Third, we progress in the standardization of our system for 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 and... 第四, AI理财师 和 浦E商学 平台 主要 以 优化 完善 和 精益求精 为主. 其中 AI理财师 上线 了 保单 鉴证 与 基金 鉴证 功能, 更好 地 赋能 理财师. 浦E商学 平台 以 满足 独立 商业化 运营 的 需求. Fourth, we further optimize the i Financial Planner app and Puyi Business School app. We launched the insurance policy diagnosed and fund healthcare diagnosed functions for the i Financial Planner 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. 5, 成 本 费 用 可 控, 组 织 架 构 优 化 效 果 显 著. Fifth, we strictly control costs and expenses and achieve success in organizational structure optimization. 在 目 前 外 部 经 营 环 境 并 未 完 全 好 转 的 大 背 景 下 ， 本 期 内 管 理 层 继 续 进 行 降 本 增 效 的 动 作 。 在 分 公 司 方 面 ， 进 一 步 收 缩 经 营 场 地 ， 降 低 了 职 场 费 用 。 在 营 销 费 用 管 控 方 面 ， 公 募 基 金 组 合 账 户 的 营 销 费 用 已 经 从 按 新 增 账 户 数 进 行 奖 励 ， 改 为 按 照 新 增 投 资 额 进 行 奖 励 的 机 制 。 公 募 基 金 组 合 营 销 费 用 大 幅 下 降 。 Despite yet to be improved external business environment, the management continued to reduce costs and increase efficiency in this reporting period. For our branch office, we further shrank the operating space and reduced the workplace expense. At the same time, we are able to decrease our marketing expenses significantly as we change our marketing initiatives for public raised fund product portfolios from stimulating the growth of our new accounts to stimulating the growth of new investments. 二 ， 接 下 来 我 将 简 单 介 绍 公 司 本 期 的 经 营 情 况 。 I will briefly discuss our financial conditions for the first half of the fiscal year 2023. 本 期 总 营 业 收 入 为 人 民 币 六 千 八 百 四 十 二 点 九 万 元 ， 比 去 年 同 期 人 民 币 一 亿 元 减 少 了 百 分 之 三 十 二 点 六 。 按 各 业 务 条 线 。 For the first half of the fiscal year 2023, net revenues decreased period on period by 32.6% from RMB 101.5 million - RMB 68.4 million $9.9 million. Now let's turn to each individual business line. 一 ， 首 先 是 财 富 管 理 业 务 。 First, for our wealth management service. 本 期 财 富 管 理 业 务 营 业 收 入 为 RMB 53.546 million, 比 去 年 同 期 RMB 94.232 million 减 少 了 43.2%. 其 中. Net revenues generated from our wealth management service decreased period on period by 43.2% from RMB 94.2 million- RMB 53.5 million $7.8 million in particular. 本 期 私 募 基 金 产 品 收 入 为 人 民 币 一 千 七 百 四 十 九 点 三 万 元 ， 比 去 年 同 期 人 民 币 三 千 八 百 七 十 六 点 七 万 元 减 少 了 百 分 之 五 十 四 点 一 。 减 少 主 要 是 因 为 投 ， 一 投 资 者 受 市 场 波 动 的 影 响 ， 对 未 来 不 确 定 性 增 大 ， 因 此 对 私 募 基 金 产 品 的 风 险 较 大 的 产 品 存 在 消 极 情 绪 。赎 回 官 网 的 意 愿 增 大 。 因 此 ， 报 告 期 间 ， 我 们 的 私 募 基 金 产 品 销 售 规 模 及 存 量 规 模 都 有 所 减 少 ， 导 致 佣 金 收 入 含 管 理 费 的 减 少 。 二 ， 本 期 私 募 基 金 浮 动 业 绩 报 酬 为 人 民 币 一 百 七 十 六 点 四 万 元 ， 较 去 年 同 期 人 民 币 三 百 零 二 点 四 万 元 减 少 了 百 分 之 四 十 一 点 七 。 Net revenues generated from the distribution of privately raised fund products for the reporting period were RMB 17.8 million, $2.6 million, representing a 54.1% period-on-period decrease from RMB 38.8 million. 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 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. Second, performance based fees of RMB 1.8 million recognized in the first half of the fiscal year 2023 as compared to RMB 3 million in the first half of the fiscal year 2022, representing a 41.7% decrease. 本 期 公 募 基 金 产 品 收 入 为 人 民 币 三 千 五 百 七 十 五 点 四 万 元 ， 比 去 年 同 期 人 民 币 五 千 五 百 四 十 六 点 五 万 元 减 少 了 百 分 之 三 十 五 点 五 。 减 少 主 要 是 因 为 受 到 全 球 地 缘 政 治 及 国 内 疫 情 严 管 控 的 影 响 ， A 股 市 场 长 期 萎 靡 不 振 ， 广 大 投 资 者 的 投 资 信 心 低 迷 ， 公 募 基 金 产 品 销 售 规 模 不 理 想 ， 因 此 导 致 了 佣 金 收 入 的 减 少 。 现 在 疫 情 管 控 已 放 开 ， 国 内 经 济 及 市 ， 金 融 市 场 进 入 了 恢 复 时 期 ， 我 们 有 信 心 随 同 国 家 的 经 济 的 恢 复 ， 将 尽 快 恢 复 公 募 基 金 产 品 的 销 售 能 力 。 Net revenues generated from the distribution of public raised fund products for the reporting period were RMB 35.8 million, $5.2 million, representing a 35.5% period-on-period decrease from RMB 55.5 million. 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 public raised fund products and a reduction in commission income. Currently, the COVID-19 control measures have been relaxed and the domestic economic and financial markets have entered a recovery period. We are confident that with the recovery of China economic, the transaction value of public raised fund products will be restored soon. 二 ， 接 着 是 资 产 管 理 业 务 。 Second, for our asset management service. 本 期 资 产 管 理 业 务 营 业 收 入 为 人 民 币 一 百 一 十 六 点 一 万 元 ， 比 去 年 同 期 人 民 币 三 百 七 十 点 四 万 元 减 少 了 百 分 之 六 十 八 点 七 。 减 少 主 要 是 因 为 我 们 主 动 管 理 的 富 富 基 金 在 报 告 期 内 取 得 人 民 币 七 点 六 万 元 的 浮 动 业 绩 报 酬 ， 较 去 年 同 期 人 民 币 一 百 七 十 七 点 八 万 元 减 少 了 百 分 之 九 十 五 点 七 。 Net revenues generated from asset management service for the reporting period were RMB 1.2 million, $0.2 million, representing a 68.7% period on period decrease from RMB 3.7 million. The decrease was primarily due to a 95.7% decrease in performance based fees generated by our actively managed fund of funds to RMB 76,000, $11,000 for the first half of the fiscal year 2023 from RMB 1.8 million for the same period of the fiscal year 2022. 三 ， 然 后 是 保 险 咨 询 业 务 。 First, for our insurance consulting service. 本 期 保 险 咨 询 业 务 营 业 收 入 为 人 民 币 六 百 九 十 九 点 零 万 元 ， 比 去 年 同 期 人 民 币 三 百 二 十 九 万 元 增 加 了 百 分 之 一 百 一 十 二 点 七 。 增 加 主 要 是 因 为 我 们 为 更 多 客 户 提 供 咨 询 服 务 ， 相 应 的 客 户 的 保 险 规 模 也 有 所 增 长 。 Net revenues generated from our insurance consulting service for the reporting period were RMB 7 million, $1 million, representing a 112.7% period-on-period increase from RMB 3.3 million. The increase was primarily due to the fact that we provided consulting service to more clients and the insurance premium had increased accordingly. 是. 最 后 是 其 他 收 入. Last, for our other service. 本 期 其 他 营 业 收 入 为 人 民 币 六 百 七 十 二 点 三 万 元 ， 比 去 年 同 期 人 民 币 二 十 六 万 元 增 加 了 两 千 四 百 八 十 五 点 八 。 其 他 收 入 主 要 来 源 于 为 客 户 提 供 的 与 信 托 及 家 族 财 富 传 承 相 关 的 咨 询 服 务 。 Net revenues generated from other service for the reporting period were RMB 6.7 million, $1 million, representing a 2,485.8% period-on-period increase from RMB 0.3 million. Revenue from other services in this reporting period mainly come from consulting service related to trust and family wealth inheritance service provided to clients. 三 ， 最 后 我 们 将 讲 述 公 司 未 来 的 规 划 及 展 望 。 Last but not the least, let's elaborate on our strategic plans and our outlooks for the future. 随 着 疫 情 防 控 政 策 在 2022 年 年 底 的 全 面 开 放 ， 我 们 相 信 2023 年 中 国 经 济 将 从 实 向 上 增 长 态 势 。 注 册 制 的 推 出 也 将 推 动 中 国 资 本 市 场 重 塑 新 生 态 。 随 着 投 资 者 信 心 逐 步 恢 复 及 预 期 回 暖 ， 我 们 相 信 财 富 管 理 行 业 的 低 迷 状 况 将 在 2023 年 将 得 到 持 续 改 善 。 公 司 将 重 点 做 好 以 下 几 项 工 作 。 In light of the relaxation of the pandemic prevention and control policy at the end of 2022, we believe that China's economic 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 and thrives, we believe that the market wealth management industry is expected to improve continuously in 2023. We will focus on the following four main strategies. 一 ， 稳 住 接 盘 ， 趁 势 发 展 。 First, to stabilize our core business and capitalize on the trend of economic recovery. 公 募 基 金 组 合 是 公 司 的 核 心 主 营 业 务. 最 近 两 年 受 COVID-19 冲 击, 经 济 下 行 导 致 的 资 本 市 场 不 正 等 影 响, 存 量 规 模 有 一 定 的 下 滑. 公 司 管 理 层 已 明 确 要 求 在 2023 年 要 抓 住 经 济 复 苏 机 遇 期, 进 一 步 强 化 公 募 基 金 投 研 能 力, 特 别 是 要 强 化 运 营 服 务 能 力, 适 时 加 大 对 公 募 基 金 的 营 销 投 入 及 推 广 力 度. 在 守 住 公 司 经 营 基 本 盘 的 同 时, 更 是 抓 住 新 的 增 长 机 遇. Distribution of public raised fund product portfolios is our core and main business. The outstanding balance of our public raised fund product portfolios declined in the past 2 years due to the impact of the epidemic and the sluggish capital market caused by the economic downturn. 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. 二 ， 深 度 挖 掘 高 净 值 客 户 的 家 庭 需 求 ， 提 升 高 客 服 务 能 力 。 Second, to further explore the needs of families... trust service capabilities. 一 方 面 ， 公 司 将 继 续 提 升 针 对 高 净 值 客 户 的 家 族 信 托 服 务 水 平 ， 通 过 自 主 研 发 的 家 办 系 统 来 不 断 提 升 运 营 效 率 ， 根 据 客 户 需 求 引 进 及 优 化 产 品 及 服 务 提 供 商 ， 加 大 外 部 公 司 取 勤 ， 渠 道 的 拓 展 力 度 ， 强 化 公 司 对 B 端 的 服 务 能 力 。 另 一 方 面 ， 公 司 将 关 注 高 净 值 客 户 的 全 生 命 周 期 家 庭 需 求 ， 关 注 财 富 管 理 产 业 链 上 下 游 的 生 态 状 况 ， 寻 找 业 务 合 作 、 并 购 整 合 机 会 ， 务 求 为 高 净 值 客 户 提 供 更 具 多 元 化 的 服 务 ， 如 少 儿 教 育 、 老 年 康 养 等 。 We will continue to improve the quality of our family trust service for wealthy and high-net-worth clients by increasing operational efficiencies through our self-developed family office system. Launch and optimize our products 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 system. Further, we will pay attention to the needs of families of wealthy and high-net-worth clients. Observe the upstream and downstream wealth management industry, seek opportunities for business collaborations and mergers and acquisitions, and try to provide more a path for potential future business opportunities. 机 构 业 务 领 域 目 前 虽 竞 争 激 烈 ， 但 我 们 仍 有 巨 大 机 会 。 根 据 我 们 自 身 的 禀 赋 ， 我 们 的 优 势 撒 一 刀 在 银 行 与 保 险 行 业 。 未 来 ， 公 司 将 以 买 方 投 顾 调 度 ， 联 合 投 研 力 量 和 普 益 家 办 等 共 同 富 能 机 构 客 户 ， 深 耕 银 行 与 保 险 行 业 ， 以 开 放 心 态 真 诚 相 待 ， 互 助 共 赢 ， 并 快 提 升 市 场 占 有 率 。 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 will 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. 是 IT 服 务 自 主 可 控 ， 精 益 求 精 ， 助 力 核 心 业 务 发 展 。 Fourth, to develop a self-control IT infrastructure to assist in the continuous improvement of our core business. 2023 年 ， 我 们 将 集 中 资 源 ， 以 助 力 重 点 业 务 发 展 为 核 心 ， 聚 焦 浦 银 基 金 平 台 、 机 构 业 务 系 统 和 家 办 业 务 系 统 建 设 。 In 2023, we will concentrate our resource on upgrading the Puyi Fund app, institutional business system and family office business system. 第 一 ， 浦 银 基 金 平 台 围 绕 一 站 式 综 合 投 顾 服 务 平 台 理 念 目 标 ， 以 数 字 化 、 智 能 化 完 善 现 有 平 台 体 系 ， 升 级 智 能 投 顾 系 统 ， 将 投 顾 与 陪 伴 深 度 融 合 到 客 户 全 生 命 周 期 中 。 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 life cycle. 第 二 ， 机 构 业 务 系 统 快 速 优 化 与 迭 代 系 统 功 能 和 经 验 ， 以 求 尽 快 达 到 头 部 平 台 水 平 。 Second, for the institutional business system, we will timely optimize and iterate its functions to keep up with leading platforms as soon as. 第 三 ， 家 办 业 务 系 统 主 要 三 部 分 重 点 工 作. 一 是 打 通 与 信 托 公 司 系 统 对 接 ， 实 现 与 信 托 公 司 资 料 流 ， 流 转 信 息 化 ， 进 一 步 提 升 信 托 流 程 效 率. 二 是 加 快 数 字 化 建 设 ， 实 时 查 看 信 托 进 展 和 状 态. 三 是 系 统 整 体 的 优 化 与 完 善 ， 更 好 地 助 力 家 办 业 务 发 展. Third, for the family office business systems, we will upgrade from 3 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. Second, to strengthen our digitalization construction. 沉 舟 侧 To further improve the efficiency in. It seems like our line just dropped off for 4 seconds, so let me repeat. Third, for the family office business system, we will upgrade it from 3 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. Second, to strengthen our digitalization construction to obtain real-time data analyst of our trust service progress and status. Third, to optimize and improve our IT infrastructure to better support the development of the family office business. 沉 舟 侧 畔 千 帆 过 ， 病 树 前 头 万 木 春 。 后 疫 情 时 代 ， 财 富 管 理 行 业 将 迎 来 长 足 发 展 的 大 时 代 ， 公 司 管 理 层 将 执 行 稳 中 求 进 的 经 营 策 略 ， 从 容 应 对 风 险 挑 战 ， 紧 抓 市 场 机 遇 。 我 们 对 公 司 未 来 发 展 充 满 信 心 。 Pass a fallen ship, one thousand sail onward. For victory, ten thousand trial by flame. 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 risk and challenge and seizing market opportunities. We are very confident in the future development of our company. That ends with our prepared remarks. Now we are open for questions. Operator, please. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. One moment, please. Again, as a reminder to ask a question, you will need to press star one one on your telephone. Please stand by. As a reminder to ask a question, please press star one one on your telephone. One moment, please. At this time, I would now like to turn back to Jing He for closing remarks. Thank you. Seems no question at this time. It seems like our line drops of for a second. If you are interested in the free full transcript, we will upload it on our website after this call. Please go ahead and see it if you are interested. We have no other comments at this time. 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. This now concludes today's conference call. Thank you for participating.