U.S. Markets closed
  • S&P Futures

    4,381.50
    -93.25 (-2.08%)
     
  • Dow Futures

    33,992.00
    -261.00 (-0.76%)
     
  • Nasdaq Futures

    14,308.00
    -193.00 (-1.33%)
     
  • Russell 2000 Futures

    2,008.40
    -23.30 (-1.15%)
     
  • Crude Oil

    0 (0)
     
  • Gold

    1,841.10
    -0.60 (-0.03%)
     
  • Silver

    24.34
    -0.37 (-1.50%)
     
  • EUR/USD

    1.1348
    +0.0031 (+0.2724%)
     
  • 10-Yr Bond

    1.7350
    -0.0120 (-0.69%)
     
  • Vix

    28.85
    +3.26 (+12.74%)
     
  • GBP/USD

    1.3555
    -0.0045 (-0.3321%)
     
  • USD/JPY

    113.6500
    -0.4500 (-0.3944%)
     
  • BTC-USD

    36,261.57
    +947.68 (+2.68%)
     
  • CMC Crypto 200

    823.79
    +13.18 (+1.63%)
     
  • FTSE 100

    7,494.13
    -90.88 (-1.20%)
     
  • Nikkei 225

    27,522.26
    -250.64 (-0.90%)
     

Hywin Holdings Announces Unaudited Financial Results for the Fourth Quarter and Full Year of Fiscal 2021

  • Oops!
    Something went wrong.
    Please try again later.
·18 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • HYW

- Hywin Holdings Announces Record Fourth Quarter Results –

- Net Income Grew 95.6% in Fiscal Year 2021 –

SHANGHAI, China, Aug. 31, 2021 (GLOBE NEWSWIRE) -- Hywin Holdings Ltd. ("Hywin Wealth," “Hywin,” or the "Company") (NASDAQ: HYW), a leading independent wealth management service provider in China, today announced its unaudited financial results for the fourth quarter and full year of fiscal 2021 ended June 30, 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 from RMB 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 from RMB 9.29 million in the same period of 2020.

  • Net revenues increased by 43.0% to RMB 502.31 million (US$ 77.78 million) from RMB 351.19 million in the same period of 2020.

    • Net revenues per relationship manager increased by 57.9% to RMB 343,579 from RMB 217,590 in the same period of 2020.

  • Net income increased by 111.1% to RMB 62.10 million (US$ 9.62 million) from RMB 29.42 million in the same period of 2020.

  • Basic earnings per American Depositary Share ("ADS") was RMB 2.22 (US$ 0.34), compared with RMB 1.18 in the same period of 2020. Diluted earnings per ADS was RMB 2.14 (US$ 0.33), compared with RMB 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 of June 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 from RMB 68.49 billion in fiscal 2020.

    • Transaction value of wealth management products per relationship manager increased by 16.1% to RMB 52.38 million from RMB 45.12 million in fiscal 2020.

  • Net revenues increased by 42.8% to RMB 1,834.42 million (US$ 277.11 million) from RMB 1,284.86 million in fiscal 2020.

    • Net revenues per relationship manager increased by 44.1% to RMB 1.22 million from RMB 0.85 million in fiscal 2020.

  • Net income increased by 95.6% to RMB 207.66 million (US$ 31.37 million) from RMB 106.15 million in fiscal 2020.

  • Basic earnings per American Depositary Share ("ADS") was RMB 8.05 (US$ 1.22), compared with RMB 4.25 in fiscal 2020.

  • Diluted earnings per ADS was RMB 7.76 (US$ 1.17), compared with RMB 4.25 in fiscal 2020.

Ms. Wang Dian, Chief Executive Officer and Director of Hywin, commented, “Our financial and operating results for the fourth quarter and fiscal year 2021 were record high. While we continued to grow our new client base, we also saw strong, recurring transaction demands from our existing users, as evident in our industry-leading 76.7% repeat investment rate from our existing clients. Meanwhile, we continued to diversify our product offerings and are seeing early success in several newer product categories, such as our privately-raised securities products. These efforts, combined with our continuing strategies to expand our geographic footprint, to enhance our technology, and to strengthen our research and advisory capabilities, will drive value creation for our clients and shareholders.”

Mr. Lawrence Lok, Chief Financial Officer of Hywin, stated, “During the fourth quarter and fiscal year 2021, we achieved impressive growth while maintaining cost discipline. Productivity per relationship manager increased, whereas our sales and marketing expenses and our general and administrative expenses both declined as a percentage of revenue. As a result, our net income for fiscal year 2021 increased by 95.6% from the prior fiscal year. Looking forward, we will continue our investment, especially in R&D and in training our talents to drive further productivity gains, as we carefully execute our growth strategy.”

Fourth Quarter Fiscal 2021 Financial Results

Net Revenues

Total net revenues in the quarter ended June 30, 2021 increased by 43.0% to RMB 502.31 million (US$ 77.78 million) from RMB 351.19 million in the same period of 2020.

  • Net revenues from wealth management services in the quarter ended June 30, 2021 increased by 43.5% to RMB 493.62 million (US$ 76.43 million) from RMB 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% to RMB 2.93 million (US$ 0.45 million) from RMB 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 were RMB 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 June 30, 2021 increased by 39.3% to RMB 423.47 million (US$ 65.57 million) from RMB 304.08 million in the same period of 2020, in line with net revenue growth.

  • Cost of compensation and benefits in the quarter ended June 30, 2021 increased by 41.3% to RMB 277.97 million (US$ 43.04 million) from RMB 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% to RMB 80.15 million (US$ 12.41 million) from RMB 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% to RMB 56.21 million (US$ 8.70 million) from RMB 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 were RMB 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 June 30, 2021 increased by 67.4% to RMB 78.85 million (US$ 12.21 million) from RMB 47.11 million in the same period of 2020.

Net Income

Net income in the quarter ended June 30, 2021 increased by 111.1% to RMB 62.10 million (US$ 9.62 million) from RMB 29.42 million in the same period of 2020.

Earnings per ADS

Basic earnings per ADS in the quarter ended June 30, 2021 was RMB 2.22 (US$ 0.34), compared with RMB 1.18 in the same period of 2020.

Diluted earnings per ADS in the quarter ended June 30, 2021 was RMB 2.14 (US$ 0.33), compared with RMB 1.18 in the same period of 2020.

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 RMB 1,834.42 million (US$ 277.11 million) from RMB 1,284.86 million in the full year of fiscal 2020.

  • 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) from RMB 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) from RMB 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 RMB 1,552.82 million (US$ 234.57 million) from RMB 1,125.82 million in the full year of fiscal 2020, in line with net revenue growth.

  • 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) from RMB 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) from RMB 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) from RMB 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 RMB 281.61 million (US$ 42.54 million) from RMB 159.05 million in the full year of fiscal 2020.

Net Income

Net income in the full year of fiscal 2021 increased by 95.6% to RMB 207.66 million (US$ 31.37 million) from RMB 106.15 million in the full year of fiscal 2020.

Earnings per ADS

Basic earnings per ADS in the full year of fiscal 2021 was RMB 8.05 (US$ 1.22), compared with RMB 4.25 in the full year of fiscal 2020.

Diluted earnings per ADS in the full year of fiscal 2021 was RMB 7.76 (US$ 1.17), compared with RMB 4.25 in the full year of fiscal 2020.

Each ADS represents two of the Company’s ordinary shares.

Balance Sheet

As of June 30, 2021, the Company had RMB 705.31 million (US$ 109.18 million) in cash, cash equivalents, and restricted cash, compared with RMB 188.39 million as of June 30, 2020.

Recent Developments

On 7 July, Hywin’s CEO, Ms Wang Dian, was featured in the “InvestHK Family Office” promotional video as one of the ambassadorial figures for the family office initiative of the Hong Kong SAR Government.

On 20 July, Hywin received the Type 1 License (Dealing in Securities) from the Securities and Futures Commission of Hong Kong, complementing our existing Type 4 (Advising on Securities), Type 5 (Advising on Futures Contracts) and Type 9 (Asset Management) Licenses.

On 12 August, Hywin appointed Mr. Wai Lok (Lawrence) to the position of Chief Financial Officer, to strengthen our shareholder value-centric business strategy, and broaden our conversations with the international investor community. Prior to joining Hywin, Mr. Lok was a senior investment banker at Citigroup for more than 15 years.

Conference Call Information

The Company’s management team will hold a Direct Event conference call on August 31, 2021, at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time on the same day) to discuss the financial results. Details for the conference call are as follows:

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 August 31, 2021, by dialing the following numbers:

International:

+612-8199-0299

United States Toll Free:

+1-855-452-5696

Mainland China Toll Free:

400-632-2162

Hong Kong, China Toll Free:

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 U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars in this press release were made at a rate of RMB6.46017 to US$1.00 for figures on the balance sheet as of June 30, 2021, RMB6.45838 to US$1.00 for figures on the income statement for the three months ended June 30, 2021, and RMB6.61999 to US$1.00 for figures on the income statement for the twelve months ended June 30, 2021.

About Hywin Holdings Ltd.

Hywin (NASDAQ: HYW) is a leading independent wealth management service provider in China focused on providing asset allocation advisory services and comprehensive financial products to high-net-worth clients. The Company’s primary services are wealth management, asset management, and other comprehensive financial services. Wealth management is currently the Company’s largest business segment, in which its onshore and offshore solution platforms serve clients across generations. For more information, please visit https://ir.hywinwealth.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “forecast,” “plan,” “project,” “potential,” “continue,” “ongoing,” “expect,” “aim,” “believe,” “intend,” “may,” “should,” “will,” “is/are likely to,” “could” and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Contact:
Hywin Holdings Ltd.
Jingyi Wen
Email: ir@chyjr.com

ICR, LLC
Robin Yang
Phone: +1 212-537-5797
Email: HywinIR@icrinc.com

Media contact:
ICR, LLC
Ker Zheng
Phone: +86 139-2280-3249
Email: HywinPR@icrinc.com


HYWIN HOLDINGS LTD.

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,

6/30/2020

6/30/2021

6/30/2021

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

%


HYWIN HOLDINGS LTD.
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

6/30/2020

6/30/2021

6/30/2021

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

%



HYWIN HOLDINGS LTD.
CONSOLIDATED BALANCE SHEETS

(unaudited)

6/30/2020

6/30/2021

6/30/2021

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 (US$0.0001 par value; authorized 500,000,000 shares; issued and outstanding 50,000,000 shares
as of June 30, 2020; issued and outstanding 56,000,000 shares as of June 30, 2021)

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 June 30, 2021.
8 An appropriately weighted average exchange rate for the reporting period.
9 An appropriately weighted average exchange rate for the reporting period.