Transaction value and net revenue sustained growing momentum despite volatile market
AUM increased by 114.3% as Hywin’s EAM business demonstrated its attractiveness to ultra-HNW clients
First Half of Fiscal Year 2023 Highlights
- Total revenues increased by 17.6% to
RMB1,036.0 million (US$148.8 million ) fromRMB881.3 million in the same period of 2021, primarily due to an increase in transaction value of the products distributed on the Company’s platform.- Aggregate transaction value of wealth management products distributed on the Company’s platform increased by 6.9% to
RMB40.1 billion fromRMB37.5 billion in the same period of 2021, mainly attributable to an increase of transaction value in asset-backed products.
- Aggregate transaction value of wealth management products distributed on the Company’s platform increased by 6.9% to
- Income from operations increased by 15.5% to
RMB102.1 million (US$14.7 million ) fromRMB88.4 million in the same period of 2021, attributable to the increase in net revenue and improved operating efficiency. - Net revenues from asset management business increased by 79.4% to
RMB16.2 million (US$2.3 million ) fromRMB9.0 million in the same period of 2021, primarily due to an increase in assets under management.- Assets under management for asset management business increased by 114.3% to
RMB7,013.4 million as ofDecember 31, 2022 , fromRMB3,272.8 million as ofDecember 31, 2021 .
- Assets under management for asset management business increased by 114.3% to
- Number of clients1 increased by 8.7% to 146,418 as of
December 31, 2022 from 134,656 as ofDecember 31, 2021 . - Number of active clients2 increased by 3.9% to 36,742 in the six months ended
December 31, 2022 from 35,366 in the same period of 2021. - Strong nationwide coverage: We maintained a strong, nationwide footprint with 1,738 relationship managers and 177 wealth planning centers across 88 cities in
China as ofDecember 31, 2022 .
6 months ended, | 6 months ended, | 6 months ended, | Change | |||
RMB'000 | RMB'000 | USD'000 | ||||
Total Revenues | 881,256 | 1,035,984 | 148,833 | 17.6 | % | |
Income from Operations | 88,390 | 102,059 | 14,662 | 15.5 | % | |
Net Income | 70,362 | 70,582 | 10,140 | 0.3 | % | |
Assets Under Management | 3,272,810 | 7,013,429 | 1,007,011 | 114.3 | % | |
- Our new
Hywin Health business segment comprises Beijing iLife 3Technology Co., Ltd. and Sincerity and Compassion Health Management Center, which we acquired during this reporting period, as well asGrand Doctor Medical Co., Ltd. , which we acquired inJanuary 2022 . - In light of these acquisitions,
Hywin Health currently operates 5 high-end clinics inShanghai , Beijing,Chengdu andChongqing . Hywin Health’s business model comprises (i) high-end medical examination services and (ii) health management services. - During the reporting period, we were in initial phase of integrating
Hywin Health into our existing operations and transforming the business model ofHywin Health . - Number of
Hywin Health clients3 was 28,763 as ofDecember 31, 2022 . - Number of medical examination visits was 4,936, which generated revenue of
RMB12.4 million in the first half of fiscal year 2023. - Number of health management service clients was 1,178, which generated revenue of
RMB25.9 million in the first half of fiscal year 2023. - Net revenues were
RMB38.3 million (US$5.5 million ) in the first half of fiscal year 2023. - Net loss was
RMB24.2 million (US$3.5 million ) in the first half of fiscal year 2023.
A summary of the operating results of Hywin Health’s business segment is as follow:
6 months ended, | 6 months ended, | |||
RMB’000 | USD’000 | |||
Net Revenues | 38,304 | 5,503 | ||
Operating Costs and Expenses | ||||
- | (26,152 | ) | (3,757 | ) |
-Sales and marketing expenses | (9,395 | ) | (1,350 | ) |
-General and administrative expenses | (26,320 | ) | (3,781 | ) |
Other (expenses)/income | (634 | ) | (91 | ) |
Net Loss | (24,197 | ) | (3,476 | ) |
Ms.
Mr.
First Half of Fiscal Year 2023 Financial Results
Net Revenues
Total net revenues in the six months ended
- Net revenues from wealth management services in the six months ended
December 31, 2022 increased by 13.4% toRMB970.2 million (US$139.4 million ) fromRMB855.4 million in the same period of 2021, in line with our increase in transaction value. - Net revenues from asset management services in the six months ended
December 31, 2022 increased by 79.4% toRMB16.2 million (US$2.3 million ) fromRMB9.0 million in the same period of 2021, primarily due to an increase in assets under management. - Net revenues from health management services in the six months ended
December 31, 2022 wereRMB38.3 million (US$5.5 million ).
Operating Costs and Expenses
Total operating costs and expenses in the six months ended
- Cost of compensation and benefits in the six months ended
December 31, 2022 increased by 16.6% toRMB576.2 million (US$82.8 million ) fromRMB494.1 million in the same period of 2021, in line with the increases in the number of relationship managers and transaction value.- Cost related to
Hywin Health business segment in the six months endedDecember 31, 2022 wasRMB26.2 million (US$3.8 million ).
- Cost related to
- Sales and marketing expenses in the six months ended
December 31, 2022 increased by 4.8% toRMB182.6 million (US$26.2 million ) fromRMB174.2 million in the same period of 2021, due to increased marketing and sales activities, including new marketing and sales activities relating to health management services. - General and administrative expenses in the six months ended
December 31, 2022 increased by 21.4% toRMB146.2 million (US$21.0 million ) fromRMB120.5 million in the same period of 2021, primarily due to increased personnel expenses in research, investment and financial advisory, as well as new expenses related to health management services.
Income from Operations
As a result of the foregoing, income from operations in the six months ended
Net Income
Net income in the six months ended
Earnings per ADS
Basic earnings per ADS in the six months ended
Diluted earnings per ADS in the six months ended
Each ADS represents two of the Company’s ordinary shares.
Balance Sheet
As of
As of
As of
As of
Recent Developments
On
On
On
Conference Call Information
The Company’s management team will hold a Direct Event conference call on
Event Title: | Hywin Holdings First Half of Fiscal Year 2023 Earnings Conference Call |
Registration Link: | https://register.vevent.com/register/BIf227d9cab41a4a72bdcaa5618aa99375 |
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 live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://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@hywinwealth.com
Media contact:
Email: HywinPR@icrinc.com
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||
(In thousands, except for per ADS data and percentages) | |||||||||
(unaudited) | |||||||||
6 months ended, | 6 months ended, | 6 months ended, | Change | ||||||
RMB'000 | RMB'000 | USD'000 | |||||||
Net Revenues | |||||||||
-Wealth management | 855,417 | 970,157 | 139,376 | 13.4 | % | ||||
-Assets management | 9,033 | 16,203 | 2,328 | 79.4 | % | ||||
- | - | 38,304 | 5,503 | N/A | |||||
-Other | 16,806 | 11,320 | 1,626 | (32.6 | )% | ||||
Total Revenue | 881,256 | 1,035,984 | 148,833 | 17.6 | % | ||||
Operating Costs and Expenses | |||||||||
-Compensation and benefits | 494,127 | 576,173 | 82,775 | 16.6 | % | ||||
-Hywin Health Costs | - | 26,152 | 3,757 | N/A | |||||
-Share-based compensation | 4,020 | 2,804 | 403 | (30.2 | )% | ||||
-Sales and marketing expenses | 174,248 | 182,553 | 26,226 | 4.8 | % | ||||
-General and administrative expenses | 120,471 | 146,243 | 21,010 | 21.4 | % | ||||
Total Operating Costs and Expenses | 792,866 | 933,925 | 134,171 | 17.8 | % | ||||
Income from operations | 88,390 | 102,059 | 14,662 | 15.5 | % | ||||
Other (expenses)/income | |||||||||
-Interest income, net | 1,562 | 549 | 79 | (64.9 | )% | ||||
-Other non-operation income, net | 7,837 | (4,559 | ) | (655 | ) | (158.2 | )% | ||
Total Other Income | 9,399 | (4,010 | ) | (576 | ) | (142.7 | )% | ||
Income before tax | 97,789 | 98,049 | 14,086 | 0.3 | % | ||||
Income tax expense | 27,427 | 27,467 | 3,946 | 0.1 | % | ||||
Net income | 70,362 | 70,582 | 10,140 | 0.3 | % | ||||
Less: net loss attributable to non-controlling interests | - | 2,033 | 292 | N/A | |||||
Net income/(loss) attributable to shareholders | 70,362 | 68,549 | 9,848 | (2.6 | )% | ||||
Other comprehensive Income | |||||||||
-Foreign currency translation (loss)/gain | (597 | ) | 2,456 | 353 | (511.4 | )% | |||
Comprehensive Income | 69,765 | 73,038 | 10,493 | 4.7 | % | ||||
Profit attributable to shareholders | 70,362 | 70,582 | 10,140 | 0.3 | % | ||||
Income per ADS | |||||||||
Income per ADS basic | 2.51 | 2.52 | 0.36 | 0.4 | % | ||||
Income per ADS diluted | 2.43 | 2.43 | 0.35 | 0.0 | % |
CONSOLIDATED BALANCE SHEETS | |||
(unaudited) | |||
RMB'000 | RMB'000 | USD'000 | |
ASSETS | |||
Current assets | |||
Cash and cash equivalents | 525,136 | 535,615 | 76,905 |
Restricted cash | 135,242 | 39,297 | 5,642 |
Accounts receivable, net | 564,374 | 593,830 | 85,264 |
Due from related parties, net | 66,103 | 36,103 | 5,184 |
Inventories | - | 10,741 | 1,542 |
Deposits, prepayments and other current assets | 51,204 | 58,240 | 8,363 |
Total Current Assets | 1,342,059 | 1,273,826 | 182,900 |
Non-current assets | |||
Property and equipment, net | 325,112 | 363,130 | 52,139 |
Long term investment | 1,000 | 1,000 | 144 |
Intangible assets, net | 33,548 | 108,969 | 15,646 |
75,194 | 293,123 | 42,088 | |
Long-term prepayments | 5,774 | 6,311 | 906 |
Deferred tax asset | 725 | 725 | 104 |
Operating lease right-of-use assets | - | 191,588 | 27,509 |
Total Non-current Assets | 441,353 | 964,846 | 138,536 |
Total Assets | 1,783,412 | 2,238,672 | 321,436 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Current Liabilities | |||
Commission payable | 83,205 | 93,399 | 13,411 |
Accounts payable | - | 28,794 | 4,134 |
Advance from customers | - | 42,381 | 6,085 |
Investors’ deposit | 132,154 | 27,457 | 3,942 |
Income tax payable | 120,151 | 147,461 | 21,173 |
Due to related parties | 36,172 | 36,622 | 5,258 |
Borrowings | 2,000 | - | - |
Consideration payable | 15,300 | - | - |
Other payable and accrued liabilities | 390,828 | 472,011 | 67,773 |
Operating lease liabilities | - | 63,215 | 9,077 |
Total Current Liabilities | 779,810 | 911,340 | 130,853 |
Non-current liabilities | |||
Commission payable-non current | 1,289 | 1,052 | 151 |
Deferred tax liability | 3,400 | 21,693 | 3,115 |
Operating lease liabilities, non-current | - | 119,975 | 17,226 |
Total Non-current Liabilities | 4,689 | 142,720 | 20,492 |
Total Liabilities | 784,499 | 1,054,060 | 151,345 |
Mezzanine equity | |||
Redeemable noncontrolling interest | 30,600 | 30,600 | 4,394 |
Total Mezzanine equity | 30,600 | 30,600 | 4,394 |
Shareholders' Equity | |||
Ordinary shares | 36 | 36 | 5 |
Additional paid-in capital | 510,390 | 512,508 | 73,588 |
Statutory reserves | 100,926 | 128,297 | 18,421 |
Accumulated gain | 348,503 | 389,682 | 55,952 |
Noncontrolling interest | - | 112,575 | 16,164 |
Other comprehensive income | 8,458 | 10,914 | 1,567 |
Total Shareholders' equity | 968,313 | 1,154,012 | 165,697 |
Total Liabilities, Mezzanine equity and Shareholder's equity | 1,783,412 | 2,238,672 | 321,436 |
_____________________________
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 have used our health management services at least once.
4 China Foreign Exchange Trade System USD/RMB mid-point rate on
5 An appropriately weighted average exchange rate for the reporting period.
Source:
2023 GlobeNewswire, Inc., source