Zhongxin Jingwei, October 26 (Wei Wei) "No matter whether the case stock rises or falls every day, it will tell you what to do in combination with the market, such as whether to teach to reduce the position, whether to teach to increase the position, etc." Recently, a staff member of Shanghai Jiufang Cloud Intelligent Technology Co., Ltd. (hereinafter referred to as "Jiufang Intelligent Investment") recommended it to the reporter of Zhongxin Jingwei.
As the parent company of Jiufang Intelligent Investment, Jiufang Wealth Holdings Limited (hereinafter referred to as "Jiufang Wealth") submitted a listing application to the Main Board of the Hong Kong Stock Exchange on August 31.
According to the prospectus, Jiufang Wealth is an online investment decision-making solution provider that provides online investor content services, and its main products include three categories: online high-end investment and education services, online financial and business education services and financial information software services.
Zhongxin Jingwei combed the prospectus and found that online high-end investment and education services are the "main force" in the company's revenue, and in the first quarter of 2021, the revenue of this business accounted for 99.2%. The standard price of the three main series of standard packages is 29,800 yuan per six months, and the price of high-end supporting series is as high as 139,600 yuan per six months.
Gross margin up to 90%
Zhongxin Jingwei noted that the gross profit margin of Jiufang Wealth is higher. Gross profit for the first quarters of 2018, 2019, 2020 and 2021 was $465,000, $226 million, $636 million and $250 million, respectively. Excluding the lower gross margin in 2018, which was only 4.8%, the gross margin in the first quarters of 2019, 2020 and 2021 was 82.5%, 89.7% and 90.6%, respectively.
According to the prospectus, in 2018, 2019 and 2020, the net profit of Jiufang Wealth was -10.541 million yuan, -57.840 million yuan and 86.682 million yuan, respectively. In the first quarter of 2021, its net profit reached 37.420 million yuan, compared with a net loss of 29.060 million yuan in the same period of 2020.
What does Jiufang Wealth rely on to turn around? The prospectus discloses that the main operating entity of Jiufang Wealth is Shanghai Fudong Culture Media Co., Ltd., and the products developed and launched include Jiufang Zhitou, Winma Xuetang, Jiufang Dragon, etc., which provide online high-end investment and education services, online financial and business education services and online financial information software services respectively.
In the above three major businesses, investment and education services are the top priority of the company's revenue. According to the prospectus, in 2018, 2019, 2020 and the first quarter of 2021, the revenue of the sector was 9.701 million yuan, 274 million yuan, 708 million yuan and 276 million yuan, accounting for 100.0%, 100.0%, 100.0% and 99.2% respectively.
Source: Jiufang Wealth Prospectus
It is reported that Jiufang Wealth has been providing online high-end investment and education services since 2018. According to the official website of the Securities Association of China, Jiufang Intelligent Investment, a subsidiary of Jiufang Wealth, is in the list of 83 securities investment consulting companies (license number: ZX0023).
What are the fees for the education services of Jiufang Intelligent Investment? The prospectus discloses that the company mainly provides online high-end investment and education services with three main series of standard supporting series. In addition to the standard package, it also provides customers with a series of excellent packages. The standard price of the three main series of standard packages is 29,800 yuan per six months, which means that the standard version has a price of 59,600 yuan a year; the standard price of the high-end supporting series is 69,800 yuan per three months or 139,600 yuan per six months.
What are the education services?
With such a high service fee, how is the service provided? On the 20th, Zhongxin Jingwei contacted the staff of Jiufang Zhitou through the official website of Jiufang Zhitou as a customer, and after adding him as a WeChat friend, the other party showed his work card and said that he was a senior assistant of a teacher.
After Zhongxin Jingwei questioned whether it was a real employee of Jiufang Zhitou, the staff member showed the reporter the registration number of the qualification certificate. On the official website of the Securities Association of China, it can indeed be found that the practitioner's practice institution is Jiufang Intelligent Investment.
According to its introduction, after joining the internal, it will provide two aspects of service, one is the case stock, after joining, it will share about 2-3 internal case stocks every week, with clear teaching trading points, position tips and daily tracking services.
The above staff further introduced that the service is a learning service, the teacher through 120 courses for systematic training, all are video courses, starting from the basics, "I believe that you will have a great improvement in stocks or watching the market later."
As for how to charge, the staff member said that the 6-month service period charged 29,800 yuan.
Zhongxin Jingwei said that when he hoped to audition, the other party pulled the reporter into a WeChat group. At this time, a person who claimed to be the head of the class sent a stock code, saying that this was sent by a teacher to internal students last Friday, with a cumulative increase of 16%, "If 100,000 funds are operated, the profit is 16,000 yuan; if the 200,000 funds are operated, the profit is 32,000 yuan", and the historical results are not used as a guarantee for future earnings.
Soon after, the squad leader sent another picture, saying that a stock rose 22% after the reminder on Friday morning, "200,000 floating profits of 48,000 yuan." The above-mentioned class leader also sent a message to say, "Some students have left a message to me, worried about joining and not getting back the tuition, I don't know if you are the same worry, in fact, the strength of the teacher is also publicly verified, in this group, Monday, Tuesday sent pre-market stocks are very good performance, do you still need to worry? Just internally shared that one is a hot direction, currently in the teaching buy price range. You have to participate in the speed process, you can keep up with the rhythm, and you can catch the actual combat class at night. ”
Source: WeChat screenshot
Zhongxin Jingwei observed in the group for a few days and found that every day the above-mentioned squad leaders would release some external case stocks, and broadcast the gains in real time, and at the same time, they would also show the "good news" of some internal students making money.
Li Min, a senior partner at Shanghai Hansheng Law Firm, introduced to Zhongxin Jingwei that WeChat stock recommendation will generally adopt the "free + member" model. The staff of the recommending institution will recommend several stocks in the group every day in a large number of recommended stock groups, but will not display key information such as stock buying points. If you want to see more key information, you need to pay a membership fee to enter the member internal group. This model needs to be noted, one is the qualification of the operating entity of the recommended stock group; the other is the process of the stock recommendation service.
According to Article 24 of the Interim Provisions on Securities Investment Consulting Business, "securities companies and securities investment consulting institutions shall regulate the promotion of securities investment consulting business and customer solicitation, prohibit false, untrue and misleading marketing publicity on service capabilities and past performance, and prohibit any way to promise or guarantee investment returns." However, in practice, WeChat stock recommendation uses a large number of very tempting language to attract customers, and then obtains benefits through the "free + membership" model.
Li Min believes that through the above-mentioned part of the chat records, it can be seen that although the recommended stock will not clearly indicate the amount of income, it gives customers psychological hints through similar words, such as "Are you afraid that the membership fee will not be earned back", so that customers mistakenly think that they are committed to earnings.
Wang Jiyue, a veteran investment banker, said in an interview with Zhongxin Jingwei that this is an inducing advertisement and is illegal. "At present, the supervision has management measures for investment advisory companies, focusing on supervising illegal solicitation and illegal stock recommendation."
"Assuming that institutions and practitioners have relevant qualifications, then it feels that the relevant remarks are a bit extensive and not cautious enough." Xu Feng, a lawyer at Shanghai Jiucheng Law Firm, told Zhongxin Jingwei.
"The recommended stock is not responsible for guaranteeing profits, just analyzing and recommending, and the decision-making and risk are still borne by the investors themselves." So in fact, the customer stickiness of this industry is not high, the liquidity is very large, and it is very important to pull customers. Wang Jiyue said.
It is worth noting that on May 31 this year, Jiufang Zhitou issued the "Important Announcement on Vigilance Against Criminals Impersonating Jiufang Zhitou to Carry out Online Fraud Activities", saying that some criminals impersonated the company's name and induced investors to download high-imitation Jiufang Zhitou's APP through WeChat, enterprise WeChat, mobile phone and other channels to carry out online fraud activities such as recharge and deposit.
Regarding how To Control Compliance Risks in the Stock Recommendation Process and How to Maintain Customer Retention Rate, Zhongxin Jingwei sent an interview question to its email address, and has not received a reply as of press time. (Zhongxin Jingwei APP)
(The views in this article are for reference only and do not constitute investment advice, investment is risky, and you need to be cautious when entering the market.) )
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