- Hywin Holdings Announces Record Fourth Quarter Results –
- Net Income Grew 95.6% in Fiscal Year 2021 –
Fourth Quarter Fiscal 2021 Highlights
- Number of clients1 increased by 12.5% to 127,317 from 113,146 in the same period of 2020.
- Number of active clients2 increased by 17.6% to 29,094 from 24,734 in the same period of 2020.
- Aggregate transaction value of wealth management products distributed on the Company’s platform increased by 39.3% to
RMB 20.89 billion fromRMB 15.00 billion in the same period of 2020.- Transaction value of wealth management products per relationship manager increased by 53.8% to
RMB 14.29 million fromRMB 9.29 million in the same period of 2020.
- Transaction value of wealth management products per relationship manager increased by 53.8% to
- Net revenues increased by 43.0% to
RMB 502.31 million (US$ 77.78 million ) fromRMB 351.19 million in the same period of 2020.- Net revenues per relationship manager increased by 57.9% to
RMB 343,579 fromRMB 217,590 in the same period of 2020.
- Net revenues per relationship manager increased by 57.9% to
- Net income increased by 111.1% to
RMB 62.10 million (US$ 9.62 million ) fromRMB 29.42 million in the same period of 2020. - Basic earnings per American Depositary Share ("ADS") was
RMB 2.22 (US$ 0.34 ), compared withRMB 1.18 in the same period of 2020. Diluted earnings per ADS wasRMB 2.14 (US$ 0.33 ), compared withRMB 1.18 in the same period of 2020.
Full Year Fiscal 2021 Highlights
- Number of clients3 increased by 12.5% to 127,317 as of
June 30, 2021 from 113,146 as ofJune 30, 2020 . - Number of active clients4 increased by 4.5% to 38,033 from 36,397 in fiscal 2020.
- Aggregate transaction value of wealth management products distributed on the Company’s platform increased by 15.0% to
RMB 78.78 billion fromRMB 68.49 billion in fiscal 2020.- Transaction value of wealth management products per relationship manager increased by 16.1% to
RMB 52.38 million fromRMB 45.12 million in fiscal 2020.
- Transaction value of wealth management products per relationship manager increased by 16.1% to
- Net revenues increased by 42.8% to
RMB 1,834.42 million (US$ 277.11 million ) fromRMB 1,284.86 million in fiscal 2020.- Net revenues per relationship manager increased by 44.1% to
RMB 1.22 million fromRMB 0.85 million in fiscal 2020.
- Net revenues per relationship manager increased by 44.1% to
- Net income increased by 95.6% to
RMB 207.66 million (US$ 31.37 million ) fromRMB 106.15 million in fiscal 2020. - Basic earnings per American Depositary Share ("ADS") was
RMB 8.05 (US$ 1.22 ), compared withRMB 4.25 in fiscal 2020. - Diluted earnings per ADS was
RMB 7.76 (US$ 1.17 ), compared withRMB 4.25 in fiscal 2020.
Ms.
Mr.
Fourth Quarter Fiscal 2021 Financial Results
Net Revenues
Total net revenues in the quarter ended
- Net revenues from wealth management services in the quarter ended
June 30, 2021 increased by 43.5% toRMB 493.62 million (US$ 76.43 million ) fromRMB 343.88 million in the same period of 2020, mostly due to expanded volumes in privately-raised products5. - Net revenues from asset management services in the quarter ended
June 30, 2021 increased by 61.4% toRMB 2.93 million (US$ 0.45 million ) fromRMB 1.81 million in the same period of 2020, driven by client interest in more diversified products and asset management offerings of the Company. - Net revenues from other services in the quarter ended
June 30, 2021 wereRMB 5.77 million (US$ 0.89 million ), mostly attributable to the Company’s technology consulting services and other value-added services.
Operating Costs and Expenses
Total operating costs and expenses in the quarter ended
- Cost of compensation and benefits in the quarter ended
June 30, 2021 increased by 41.3% toRMB 277.97 million (US$ 43.04 million ) fromRMB 196.74 million in the same period of 2020, due to increased average business volumes per relationship manager. - Sales and marketing expenses in the quarter ended
June 30, 2021 increased by 25.5% toRMB 80.15 million (US$ 12.41 million ) fromRMB 63.85 million in the same period of 2020, due to increased marketing and sales activities. - General and administrative expenses in the quarter ended
June 30, 2021 increased by 29.3% toRMB 56.21 million (US$ 8.70 million ) fromRMB 43.49 million in the same period of 2020, due to increased administrative personnel expenses in line with the Company’s expansion. - Other costs in the quarter ended
June 30, 2021 wereRMB 9.14 million (US$ 1.41 million ), mainly due to scheduled cost recognition related to the Company’s ESOP.
Income from Operations
As a result of the foregoing, income from operations in the quarter ended
Net Income
Net income in the quarter ended
Earnings per ADS
Basic earnings per ADS in the quarter ended
Diluted earnings per ADS in the quarter ended
Each ADS represents two of the Company’s ordinary shares.
Full Year Fiscal 2021 Financial Results
Net Revenues
Total net revenues in the full year of fiscal 2021 increased by 42.8% to
- Net revenues from wealth management services in the full year of fiscal 2021 increased by 40.9% to
RMB 1,795.55 million (US$ 271.24 million ) fromRMB 1,274.43 million in the full year of fiscal 2020, mostly due to expanded volumes in privately-raised products and diversified products offerings6. - Net revenues from asset management services in the full year of fiscal 2021 increased by 223.4% to
RMB 14.94 million (US$ 2.26 million ) fromRMB 4.62 million in the full year of fiscal 2020, driven by growing client interest in offshore funds and discretionary mandates managed by the Company. - Net revenues from other services in the full year of fiscal 2021 were
RMB 23.93 million (US$ 3.62 million ), mostly attributable to the Company’s technology consulting services and other value-added services.
Operating Costs and Expenses
Total operating costs and expenses in the full year of fiscal 2021 increased by 37.9% to
- Cost of compensation and benefits in the full year of fiscal 2021 increased by 41.5% to
RMB 1,003.06 million (US$ 151.52 million ) fromRMB 708.65 million in the full year of fiscal 2020, due to increased average business volume per relationship manager. - Sales and marketing expenses in the full year of fiscal 2021 increased by 32.8% to
RMB 326.88 million (US$ 49.38 million ) fromRMB 246.11 million in the full year of fiscal 2020, due to increased marketing and sales activities. - General and administrative expenses in the full year of fiscal 2021 increased by 17.2% to
RMB 200.93 million (US$ 30.35 million ) fromRMB 171.42 million in the full year of fiscal 2020, due to increased administrative personnel expenses in line with the Company’s expansion. - Other costs in the full year of fiscal 2021 were
RMB 21.95 million (US$ 3.32 million ), mainly due to scheduled cost recognition related to the Company’s ESOP.
Income from Operations
As a result of the foregoing, income from operations in the full year of fiscal 2021 increased by 77.1% to
Net Income
Net income in the full year of fiscal 2021 increased by 95.6% to
Earnings per ADS
Basic earnings per ADS in the full year of fiscal 2021 was
Diluted earnings per ADS in the full year of fiscal 2021 was
Each ADS represents two of the Company’s ordinary shares.
Balance Sheet
As of
Recent Developments
On 7 July, Hywin’s CEO, Ms
On 20 July,
On 12 August,
Conference Call Information
The Company’s management team will hold a Direct Event conference call on
Event Title: | Hywin Holdings Fourth Quarter and Full Year Fiscal 2021 Earnings Conference Call |
Conference ID: | 8225068 |
Registration Link: | https://apac.directeventreg.com/der/validateConferenceId.action |
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique access PIN, which can be used to join the conference call.
A replay of the conference call will be accessible through
International: | +612-8199-0299 |
United States Toll Free: | +1-855-452-5696 |
Mainland | 400-632-2162 |
800-963-117 | |
Access Code: | 8225068 |
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at ir.hywinwealth.com.
Exchange Rate
This press release contains translations of certain RMB amounts into
About
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the
Investor Contact:
Email: ir@chyjr.com
Phone: +1 212-537-5797
Email: HywinIR@icrinc.com
Media contact:
Phone: +86 139-2280-3249
Email: HywinPR@icrinc.com
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||
(In thousands, except for per ADS data and percentages) | |||||||||
(unaudited) | |||||||||
3 months ended, | 3 months ended, | 3 months ended, | |||||||
Change | |||||||||
RMB'000 | RMB'000 | USD'000 | |||||||
Net Revenues | |||||||||
-Wealth management | 343,880 | 493,619 | 76,432 | 43.5 | % | ||||
-Assets management | 1,813 | 2,926 | 453 | 61.4 | % | ||||
-Other | 5,498 | 5,768 | 893 | 4.9 | % | ||||
Total Net Revenues | 351,191 | 502,313 | 77,778 | 43.0 | % | ||||
Operating Costs and Expenses | |||||||||
-Compensation and benefits | 196,735 | 277,967 | 43,040 | 41.3 | % | ||||
-Share-based compensation | - | 9,135 | 1,414 | N/A | |||||
-Sales and marketing expenses | 63,852 | 80,152 | 12,411 | 25.5 | % | ||||
-General and administrative expenses | 43,490 | 56,212 | 8,704 | 29.3 | % | ||||
Total Operating Costs and Expenses | 304,077 | 423,466 | 65,569 | 39.3 | % | ||||
Income from operations | 47,114 | 78,847 | 12,209 | 67.4 | % | ||||
Other (expenses)/income | |||||||||
-Interest income, net | 46 | 201 | 31 | 337.0 | % | ||||
-Other non-operation (expenses)/income , net | (1,588 | ) | 7,132 | 1,104 | (549.1 | )% | |||
Total Other (expenses)/income | (1,542 | ) | 7,333 | 1,135 | (575.6 | )% | |||
Income before tax | 45,572 | 86,180 | 13,344 | 89.1 | % | ||||
Income tax expense | 16,150 | 24,078 | 3,728 | 49.1 | % | ||||
Net income | 29,422 | 62,102 | 9,616 | 111.1 | % | ||||
Other comprehensive Income | |||||||||
-Foreign currency translation Loss/(gain) | (166 | ) | (783 | ) | (121 | ) | 371.7 | % | |
Comprehensive Income | 29,588 | 62,885 | 9,737 | 112.5 | % | ||||
Profit attributable to shareholders | 29,422 | 62,102 | 9,616 | 111.1 | % | ||||
Income per ADS | |||||||||
Income per ADS basic | 1.18 | 2.22 | 0.34 | 88.1 | % | ||||
Income per ADS diluted | 1.18 | 2.14 | 0.33 | 81.4 | % |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||
(In thousands, except for per ADS data and percentages) | |||||||||
(unaudited) | |||||||||
12 months ended, | 12 months ended, | 12 months ended, | Change | ||||||
RMB'000 | RMB'000 | USD'000 | |||||||
Net Revenues | |||||||||
-Wealth management | 1,274,434 | 1,795,552 | 271,235 | 40.9 | % | ||||
-Assets management | 4,620 | 14,942 | 2,257 | 223.4 | % | ||||
-Other | 5,809 | 23,928 | 3,615 | 311.9 | % | ||||
Total Net Revenues | 1,284,863 | 1,834,422 | 277,107 | 42.8 | % | ||||
Operating Costs and Expenses | |||||||||
-Compensation and benefits | 708,654 | 1,003,061 | 151,522 | 41.5 | % | ||||
-Share-based compensation | (369 | ) | 21,947 | 3,315 | (6047.7 | )% | |||
-Sales and marketing expenses | 246,108 | 326,879 | 49,378 | 32.8 | % | ||||
-General and administrative expenses | 171,423 | 200,929 | 30,353 | 17.2 | % | ||||
Total Operating Costs and Expenses | 1,125,816 | 1,552,816 | 234,568 | 37.9 | % | ||||
Income from operations | 159,047 | 281,606 | 42,539 | 77.1 | % | ||||
Other (expenses)/income | |||||||||
-Interest income, net | 325 | 1,537 | 232 | 372.9 | % | ||||
-Other non-operation (expenses)/income, net | (2,458 | ) | 12,608 | 1,905 | (612.9 | )% | |||
Total Other (expenses)/Income | (2,133 | ) | 14,145 | 2,137 | (763.2 | )% | |||
Income before tax | 156,914 | 295,751 | 44,676 | 88.5 | % | ||||
Income tax expense | 50,763 | 88,094 | 13,307 | 73.5 | % | ||||
Net income | 106,151 | 207,657 | 31,369 | 95.6 | % | ||||
Other comprehensive Income | |||||||||
-Foreign currency translation Loss/(gain) | 3,641 | (10,542 | ) | (1,592 | ) | (389.5 | )% | ||
Comprehensive Income | 102,510 | 218,199 | 32,961 | 112.9 | % | ||||
Profit attributable to shareholders | 106,151 | 207,657 | 31,369 | 95.6 | % | ||||
Income per ADS | |||||||||
Income per ADS basic | 4.25 | 8.05 | 1.22 | 89.4 | % | ||||
Income per ADS diluted | 4.25 | 7.76 | 1.17 | 82.6 | % |
CONSOLIDATED BALANCE SHEETS | |||||
(unaudited) | |||||
RMB'000 | RMB'000 | USD'000 | |||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 108,358 | 439,287 | 68,000 | ||
Restricted cash | 80,027 | 266,023 | 41,179 | ||
Accounts receivable, net | 403,693 | 594,061 | 91,958 | ||
Due from related parties, net | 321,772 | 126,103 | 19,520 | ||
Deposits, prepayments and other current assets | 43,451 | 51,540 | 7,979 | ||
Total Current Assets | 957,301 | 1,477,014 | 228,636 | ||
Non-current assets | |||||
Property and equipment, net | 34,116 | 21,104 | 3,267 | ||
Intangible assets, net | 29,423 | 24,225 | 3,750 | ||
Long-term prepayments | 1,808 | 7,427 | 1,150 | ||
Deferred Tax Asset | 2,583 | 649 | 100 | ||
Total Non-current Assets | 67,930 | 53,405 | 8,267 | ||
Total Assets | 1,025,231 | 1,530,419 | 236,903 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | |||||
Commission payable | 84,857 | 127,194 | 19,689 | ||
Investors’ deposit | 74,262 | 248,277 | 38,432 | ||
Income Tax Payable | 115,432 | 116,897 | 18,095 | ||
Due to related parties | 59,254 | 24,799 | 3,839 | ||
Other payable and accrued liabilities | 168,887 | 278,697 | 43,142 | ||
Total Current Liabilities | 502,692 | 795,864 | 123,197 | ||
Non-current liabilities | |||||
Commission payable-non current | 18,321 | 10,080 | 1,560 | ||
Deferred Tax Liability | 3,961 | 3,548 | 549 | ||
Total Non-current Liabilities | 22,282 | 13,628 | 2,109 | ||
Total Liabilities | 524,974 | 809,492 | 125,306 | ||
Shareholders' Equity | |||||
Ordinary shares ( as of | 34 | 36 | 6 | ||
Additional paid-in capital | 500,581 | 503,050 | 77,870 | ||
Statutory reserves | 52,959 | 52,959 | 8,198 | ||
Accumulated (loss)/gain | (47,056 | ) | 160,601 | 24,860 | |
Other comprehensive (loss)/income | (6,261 | ) | 4,281 | 663 | |
Total Shareholders' equity | 500,257 | 720,927 | 111,597 | ||
Total Liabilities and Shareholder's equity | 1,025,231 | 1,530,419 | 236,903 | ||
__________________________
1 Clients are those who had conducted at least one transaction with the Company.
2 Active clients are those who purchased products distributed by the Company during the specified period or those who maintained as holders of the Company’s products within the given period.
3 Clients are those who had conducted at least one transaction with the Company.
4 Active clients are those who purchased products distributed by the Company during the specified period or those who maintained as holders of the Company’s products within the given period.
5 The revenues of insurance brokerage services have been absorbed into the wealth management services, reflecting the fact that insurance solutions increasingly form an integral part of the wealth management proposition to clients.
6 Note: The revenues of insurance brokerage services have been absorbed into the wealth management services, reflecting the fact that insurance solutions increasingly form an integral part of the wealth management proposition to clients.
7 China Foreign Exchange Trade System USD/RMB mid-point rate on
8 An appropriately weighted average exchange rate for the reporting period.
9 An appropriately weighted average exchange rate for the reporting period.
Source:
2021 GlobeNewswire, Inc., source