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Edited Transcript of YIN earnings conference call or presentation 18-Mar-19 12:00pm GMT

Q4 2018 Yintech Investment Holdings Ltd Earnings Call

Mar 21, 2019 (Thomson StreetEvents) -- Edited Transcript of Yintech Investment Holdings Ltd earnings conference call or presentation Monday, March 18, 2019 at 12:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Wenbin Chen

Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO

* Yvonne Young

Yintech Investment Holdings Limited - IR Director

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Conference Call Participants

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* Kin Man Wong

Jefferies LLC, Research Division - Equity Analyst

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Presentation

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Operator [1]

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Hello, and welcome to the Q4 2018 Yintech Investment Holdings Limited Earnings Conference Call and Webcast. (Operator Instructions) Please note, this event is being recorded.

Now I would like to turn the conference over to Yvonne Young. Please go ahead, ma'am.

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [2]

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Thank you, Keith, and welcome to Yintech Fourth Quarter and Full Year 2018 Earnings Conference Call. Our earnings release was released earlier today and is now available on the company's IR website. On the call today from Yintech are Mr. Wenbin Chen, Chairman and CEO and CFO; and myself, Yvonne Young, Investor Relations Director. Mr. Chen will review business operations and the company highlights, followed by myself. I will go over the financials and the guidance on behalf of Mr. Chen. We will both be available to answer your questions during the Q&A session that follows. Questions can be asked in English or Chinese. If you ask your question in Chinese, please translate into English yourself afterwards.

Before beginning, we would like to remind you that discussions during this call contains forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties and factors that may cause actual results to differ materially from those contained in any such statements. Further information regarding potential risks, uncertainties and factors is included in Yintech's filings with the U.S. Securities and Exchange Commission. Yintech does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

During this call, we will be referring to several non-GAAP financial measures as supplemental measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the U.S. GAAP. For information about these non-GAAP measures and reconciliation to GAAP measures, please refer to our earnings press release.

I will now turn over the call to Mr. Wenbin Chen. Mr. Chen will give his remarks in Chinese and I will translate for him. Mr. Chen, go ahead.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [3]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [4]

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Thank you, and thanks to everyone for joining us on the call today. While the overall Q4 revenues are flat, we remain well-positioned to continue driving robust growth in our core business. During the fourth quarter of 2018, we experienced broad-based demand in major segments of our portfolio of services, in particular spot commodities, security advisory services, futures commodities, spot commodities, delivering over 30% of growth in net commissions and fees from the previous quarter. This is a reflection of our business momentum and the indication of strong market demand.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [5]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [6]

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With that, we ended the year with perceived performance of RMB 1.09 billion in revenues and maintained strong cash position of RMB 1.74 billion, coupled with significant changes in strategic reshaping, product and services innovation and organization restructuring across our entire business as well as various branding campaigns we launched in 2018 to enhance our industry recognition in face of the most volatile markets in our business history and stricter industry regulations. We are largely satisfied with the results we achieved and the great progress we made towards repositioning Yintech as a leading comprehensive financial service provider.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [7]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [8]

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2018 was also the most valuable year for us, in a sense that we emerged to be stronger in our mind and more resilient in our business model. While maintaining our core competencies in traditional business, we engaged more resources and energy in developing new business, investing in areas that are well posed (sic) [poised] to drive futures growth. As we look to capitalize on anticipated growth opportunities we are preparing for, we believe this structural change along with the visionary investments we made in 2018 will have to gain momentum, and ultimately, drive longer-term sustainable growth for our business in 2019.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [9]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [10]

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Next, I would like to spend a bit more time talking about these major changes and breakthroughs we made in 2018 and why we are well-positioned to benefit from these achievements, to drive accelerated growth in 2019.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [11]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [12]

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First, let's look at our traditional spot gold commodity services business. In the -- the volatility of gold T+ D price in Shanghai Gold Exchange reached the lowest level since 2005 in our tracking record. As a natural result, total trading volumes in the exchange hit the historical low so was Yintech. Gold T+ D contributions to our total revenues dropped to single percent from high 20s, even high 40s in the beginning of 2017. In general, this is largely in line with overall market performance.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [13]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [14]

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Of special note, Gold Master, which we acquired in August 2016, that's historically engaged in solely the of mentioned gold T+ D trading services, today conducts a wide array of financial services. As we strive to leverage and take the most advantage of Gold Master's ever-growing vast and high-quality financial investor base it developed in the past many years, as channelled to cross-sell to our other core financial services business. The potential value of its [goodwill] and customer base is among the key components in valuing the acquisition price of Gold Master, we look to offer -- as we look to offer a wide spectrum of financial services to our customers.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [15]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [16]

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I'm sure you have been aware of the notable expense increase from a impairment of RMB 639 million in relation to the acquisition of Gold Master. This is dramatic to our bottom line, partially because the embedded value from Gold Master contributing to a certain of our security services. I'm not taking into account in evaluating its current value in according with -- in accordance with accounting policies. We believe the underlying value of Gold Master is way greater than its accounting value. In 2019, with the foreseeable continuous low volatility of gold price, the team will allocate the resources and will shift to other more promising business while remaining flexible to capture growth potential if gold T+ D price volatility increases.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [17]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [18]

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Now moving to the futures commodities. This business delivered a more stable result, contributing around 50% of our total revenues in 2018 despite fluctuations in certain quarters. I'm very pleased with our progress in diversifying our partner base, while maintaining selective to work with only top-ranking names. In 2019, we continue to see opportunities for new business initiatives. We work hard towards building stronger ties with selective partners and leveraging strategic long-term partnerships and their networks to realize this growth opportunity. We believe this initiative coupled with other expansion plans will position us well to expand more aggressively in a sustainable manner in 2019.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [19]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [20]

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Our team worked diligently in the fourth quarter to position Yintech to succeed in securities advisory business in a dynamic macroenvironment, which posted 54% of growth over the third quarter, demonstrating our ability to adapt to the evolving market environment and our strong ability to execute. In 2019 -- '18, we held ourselves to highest vendors. We have not focused simply on sheer volume growth, but have also emphasized the quality of the income and paying high attention on understanding our customers and serving customers' escalating long-term needs. For that reason, we have comprehensively strengthened our investment research and product R&D capabilities, integrating technology driven value-add products into our Apps and marketing process as a powerful tool to serve increasing needs for higher level of services.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [21]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [22]

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In the fourth quarter and throughout the year, our innovation lab continued to roll out new quantitative financial trading products and to constantly upgrade existing products adopted in the entire spectrum of our services, including futures commodities, A-shares, Hong Kong and U.S. stock, and we witnessed customers' growing use of those products, which ultimately increased our revenues.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [23]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [24]

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At the same time, we remain at the forefront of cutting-edge AI technology and its adoption in financial product trading, aiming to expand our customer base, improving customer satisfaction and loyalty. We maintained a leading position in terms of our investments and current achievements in this front.

In 2019, we expect our initial investment will achieve possible -- positive result in deepening connections with our customers and to some extent contribute to our top line growth for services that promote this innovative AI products.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [25]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [26]

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In 2019, we'll continue to help clients build their investment knowledge through professional qualities and continuous introduction of innovative financial services that are tailored to the growing needs of different level and the category of customers, including online ordinary investors and offline high net worth customers. This efforts will help us upgrade our business from a pure sales-driven model to a comprehensive service-driven model over the long run.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [27]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [28]

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In the past year, we continued to explore business opportunities. Following the acquisition of Hong Kong-based OTS Asset Management, we have extended our product pipeline and customer base horizon in our securities services from RMB asset management to global asset allocations for our customers, and from targeting online individual customers to also offline high net worth individuals. This is a strategic fast forward in establishing our presence in the new business arena and transforming us further to a comprehensive financial product and service provider.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [29]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [30]

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Beside addition of new foreign currency asset management business, in 2018, CE fund our RMB PE fund, focusing on investing in secondary Asia market, delivered remarkable results since launching its 3 core products in July 2018, and now it has expanded its equity and convertible bond [oriented] product to a total of 8. Most of our peers outperform at CSI 300 index and other major indexes.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [31]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [32]

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As of March 1, 2019, our top 3 loan only funds ranked top 2.5%, 1.3% and the most remarkable number 3 fund ranked the top 3, respectively, among a total of 10,000 competitors in China. According to data and ranking by (inaudible) our convertible bond products also delivered outstanding performance, 2 of which ranked top 1.9% and 1.4% in China.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [33]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [34]

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Our efforts have garnered high recognition within the industry as well. CE fund has won the top 10 best performance fund for all the 5 important domestic awards, including prestigious award from Securities Times, Guangfa Securities and in (inaudible) These recognitions not only affirm our hard work over the past year, but also encourage us to remain vigilant and continue to push hard our development in this new initiative in asset management.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [35]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [36]

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In 2019, while maintaining the outstanding performance, we look to expand our team introducing more equity and bond products, exploring sales channels and enhancing our marketing campaigns. Top of priorities remains on gaining greater understanding of and serving the individual and personalized needs of high net worth customers.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [37]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [38]

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Lastly, I'd like to provide a brief summary of our business restructuring to stay on top of the new business environment and improve our operation efficiency. We have streamlined our organization in 2018 to making more nimble, flexible and agile. We laid off some underperforming employees and rewarded those contributors. We strategically redeployed key resources in technology and back-office to better support our business growth. As of the end of 2018, our total employees have decreased substantially to nearly 2,800 from over 3,800 in early of the year, representing a over 20% reduction. With these efforts, we will improve operating efficiencies and increase per capita income contribution. We believe we will benefit more from this adjustment and anticipate accelerated business expansion in 2019 and beyond.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [39]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [40]

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Overall, the fourth quarter and full year 2018 results highlights the foundation of our business has never been stronger and that the prospect for future growth remains high. Macro level, the Chinese authorities have continued to introduce reforms, designed to open their market to international and domestic investors, stimulus and a wide range of reforms were implemented by the government to revitalize its economic growth have reached an appeal for stock market. This was particularly true since from the strong pickup of A-share from the beginning of 2019 and the launch of Shanghai science tech board.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [41]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [42]

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We are optimistic with China economy and A-share markets. For Yintech, we expect to capitalize on the growth opportunities in China and continue to drive incremental improvements in this business as we take advantage of our continuing investment in customer services, research capabilities that provide value-add services for our customers and operating efficiencies as well as expanding our core products and services. We are confident that with all of these positives, we will continue to improve our fundamentals and take on new challenges and opportunities ahead.

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [43]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [44]

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With that, I will now turn the call over to Yvonne, our Investor Relations Director, to discuss our financial results for the fourth quarter and full year 2018 as well as providing guidance for the first quarter of 2019.

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [45]

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Thank you, Mr. Chen, and hello, everyone. As Mr. Chen noted, we are pleased with our results for the fourth quarter and full year 2018. Our net revenues for the quarter reached RMB 286.5 million compared to RMB 386.1 million in Q4 last year and RMB 267.8 million in Q3 of last year -- Q3 this year. The sequential increase was mainly due to increase in commissions and fees from our core business, namely commodity services and securities services, which was partially offset by the trading loss in connection with the company's asset management business. The year-over-year decrease was mainly due to decrease in commissions and fees from spot commodities services.

Net commissions and fees for the quarter reached RMB 273.4 million, representing a decrease of 4.6% year-over-year and an increase of 31.4% sequentially, primarily due to the reasons I just now mentioned.

Net commissions and fees from commodities services for the quarter were RMB 152.5 million, representing an increase of 23.2% from the previous quarter, primarily as a result of increasing customer trading volumes for commodities and a higher fee rate related to the company's future commodities services.

Customer trading volume for commodities were RMB 413.8 billion during the quarter, a decrease of 42.3% year-over-year and an increase of 2.6% from the last quarter.

Effective fee rate for commodity for the quarter was 0.037% compared with 0.038% in Q4 last year and 0.031% from the previous quarter.

Net commission and fee from securities services for the quarter were RMB 120.9 million, an increase of 43.6% from the previous quarter. This was primarily due to the growth of the security advisory and security information platform business, more favorable market conditions relatively to the previous quarter. The robust growth demonstrated the effectiveness of the company's strategy to expand its securities business and its ability to execute.

Expenses for the quarter were RMB 1 billion, an increase of 147.1% from Q4 last year and increase of 244.7% from Q3 this year. As Mr. Chen just now mentioned in his remarks, during the fourth quarter, several factors came into the company's view indicating the current value of certain goodwill and intangible assets in relation to the reporting unit of Gold Master acquired by the company in August 2016 may exceed its fair values at the end of the period. Based on the independent review and procedures as well as valuation report issued by the independent external valuer, the company concluded that these assets were impaired and noncash impairment charge of RMB 639 million shall be provided as a result. This charges resulted in increase in expenses and, hence, net loss attributing to ordinary shareholders and diluted loss per ADS. Excluding the impact of noncash impairment charge stated above, total adjusted expense, which is non-GAAP basis were RMB 402.2 million, a decrease of 4.6% year-over-year and increase of 33% Q-over-Q. Besides this, the sequential increase was mainly attributable to an increase in advertising and promotion expense as the company invested in anticipation for customers' growing demand for our services in the more favorable stock market conditions relative to the previous year. In addition, the payments of year-end discretionary compensation also contributed to the increase in total expense.

Net loss as a result for the quarter was RMB 746 million compared with RMB 63.6 million in Q4 last year and net loss of RMB 33.9 million in Q3. Excluding the impact of noncash impairment charge stated above, net adjusted loss was RMB 140.6 million.

Net loss attributed to Yintech for the quarter was RMB 742.1 million compared with net loss of RMB 54.6 million in Q4 last year, and net loss of RMB 36.6 million in Q3. Excluding this impact of the noncash impairment charge, net adjusted loss attributable to Yintech would be RMB 136.6 million.

Diluted loss per ADS for the quarter was RMB 10.6 compared with RMB 0.76 (sic) [RMB 0.72] in the same quarter last year and RMB 0.50 in the previous quarter. Excluding the impact of a noncash impairment charge, adjusted diluted loss per ADS would be $1.88 (sic) [RMB 1.88.]

Non-GAAP net loss attributable to Yintech for the quarter was RMB 121.2 million compared with net income of RMB 61.4 million in the same quarter last year and net loss of RMB 22.3 million in Q3 this year.

Non-GAAP diluted loss per ADS for the quarter were RMB 1.73 million compared with non-GAAP diluted earnings per ADS of $0.81 (sic) [RMB 0.81] in the same quarter last year and $0.31 (sic) [RMB 0.31] in the previous quarter.

Next, I'd like to walk you through our full year 2018 financial results.

Revenue for the full year 2018 were RMB 1.1 billion, a decrease of 55.6% from RMB 2.4 billion from the full year 2017, mainly due to increase in net commission and fees, which were RMB 941.9 million, a decrease of 57% from 2017.

Net commission and fees from commodities services for the year 2018 were RMB 604.4 million, a decrease of 72.2% from 2017. The decrease was primarily due to a decrease in trading volumes, following the termination of trading on local exchanges. Customer trading volume for commodities were RMB 1.72 billion in 2018, a decrease of 55% from RMB 3.84 billion for 2017.

Net commission and fees from securities services of 2018 were RMB 337.5 million, representing a sharp decrease of 1,530.4% from last year.

Effective fee rate for commodities for 2018 were 0.035% compared with 0.057% for last year.

Expenses for the full year 2018 were RMB 1.97 billion, an increase of 8.5% from RMB 1.81 billion for the full year 2017, primarily attributable to the noncash impairment charge of RMB 639 million, I just now mentioned, partially offset by a decrease in employee compensation as well as advertising and promotion expenses. Excluding this charge, total adjusted expense would be RMB 1.33 billion, a decrease of 26.7% from 2017.

Net loss for the full year 2018 was RMB 887.2 million compared to net income of RMB 467 million for the full year 2017. Excluding the impact of noncash impairment charge, net adjusted loss was RMB 281.7 million.

Net loss attributable to Yintech for the full year 2018 were RMB 877.4 million compared with net income of RMB 480.7 million of 2017. Excluding this impact, net adjusted loss attributed to Yintech was RMB 271.9 million.

Diluted loss per ADS for the year was RMB 12.23 compared to diluted earnings per ADS of RMB 6.65 for the full year 2017. Excluding this impact, adjusted diluted loss per ADS will be RMB 3.74.

Non-GAAP net loss attributable to Yintech for the full year 2018 was RMB 203.6 million, compared to a net income of RMB 691.6 million for the full year 2017.

Non-GAAP diluted loss per ADS for the full year 2018 were RMB 2.84, compared with non-GAAP diluted earnings per ADS of RMB 9.56 for the full year 2017.

As of December 30, 2018, (sic) [December 31, 2018] the company has cash of RMB 257.8 million and short-term investments of RMB 1.5 billion compared with RMB 690.5 million and RMB 1.21 billion as of December 31, 2017, respectively. As of December 31, 2018, total shareholders' equity of Yintech was RMB 2.62 billion compared with RMB 3.58 billion as of December 31, 2017.

Next, let me turn to our guidance for the first quarter of 2019.

Based on the information available as of the date of this press release, Yintech provides the following outlook, which reflects the company's current and preliminary views and is subject to change: From the Q1, management decided to break down our revenue guidance, the revenue generated from noncash gains and loss, and trading gains and losses that the company invested in trading financial products.

2019 first quarter guidance will be below:

Revenues from commissions, interest income and other revenues will be in the range of RMB 220 million to RMB 240 million. Revenues from trading gains will be in the range of RMB 110 million to RMB 130 million.

This concludes my prepared remarks. Operator, you may now open the call to questions. Thank you.

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Questions and Answers

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Operator [1]

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(Operator Instructions) And the first question comes from Johnny Wong with Jefferies.

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Kin Man Wong, Jefferies LLC, Research Division - Equity Analyst [2]

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I have a few questions. Given the change in the company's businesses, do we have any sort of estimate or guidance as to the proportion of revenues contribution by each of the individual segments such as the spot business, the futures business as well as the overseas security businesses and the consulting fee businesses? That's my first question. The -- my other question relates to what something that (inaudible) said, we are trying to target more high net worth individuals and our traditional expertise is targeting online individuals. How do we go about doing targeting high net worth individuals, what's the plan there?

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [3]

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Thank you, Johnny, let me translate for Mr. Chen. (foreign language)

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Wenbin Chen, Yintech Investment Holdings Limited - Co-Founder, Chairman, CEO & CFO [4]

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(foreign language)

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [5]

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Okay. Thank you, Mr. Chen. Let me translate. Mr. Chen will answer the second question first and I will answer the first one. For the second question regarding how the company is able to acquire the customers, those high net worth customers, because those are not our traditionally strength in our customer base. Mr. Chen shared his views from below perspectives: The first one is that our customers coming from different sources, one primary source is from our existing customer base, that we will select those high net worth customers from the [vaster] customer base we ever accumulated in many years in our commodities and securities business, can cross-sell the asset management product to those high net worth customers, number one. And number two, Mr. Chen's view on the core competency of the asset management business lies in the ability of investment research capabilities and also the asset management's ability to deliver a higher performance. As we just now shared with you that our Chunda has -- the 3 core products of Chunda delivered outstanding performance in the past 1.5 years, and we are very proud of achievement we made. The average -- those 3 products along with some other convertible bond products outperformed the index and ranking the top 3% among all the 10,000 funds in China as just now you already hear it. And even the number 3 fund ranked top 1 among all of the funds in China. So in this sense, we are very satisfied with the performance Chunda Asset achieved in the past years. And then secondly, I think over the past 1.5 years we have accumulated a tremendous experience and developed core competencies in serving our customers, and we have enhanced our investment capabilities, which are essential to our sustainable growth in our business. And this will also help our business to gain momentum in other business areas. Johnny, did we address your concern for the second question?

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Kin Man Wong, Jefferies LLC, Research Division - Equity Analyst [6]

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Yes.

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [7]

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Okay. And then come to the first one about the guidance, about the revenue break down for our major business. As you know that we have 5 major business, spot commodities, future commodities, overseas securities trading services, asset management and security advisory and investor education services. Well, as we give the guidance, which is relatively strong guidance in Q1 with -- and also as Mr. Chen introduced in his remarks that we look to enhance our futures and also our overseas security trading business. We do not give the specific break down for our business, but in general, our futures commodities and also security advisory and information services will contribute majority of our revenues. So -- and -- but the difference in this quarter and also 2019 is that, we expect our overseas security trading services will contribute meaningfully to our revenue, so -- which will be more than single percent in Q1 and 2019.

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Operator [8]

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(Operator Instructions) As there are no more questions at the present time, I would like to return the floor to management for any closing comments.

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [9]

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Yes. Well, hold on a second. Johnny, do you have some other questions?

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Operator [10]

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I'm sorry, he's already out of the queue. [lindiscernible]

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [11]

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Okay. All right. Well, since no more questions, I think we can end the call.

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Operator [12]

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Okay. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

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Yvonne Young, Yintech Investment Holdings Limited - IR Director [13]

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Thank you. Bye.