Financial Data and Key Metrics Changes - Net revenues increased by 5.9% year-on-year to RMB1.94 billion, while net income grew by 13.6% to RMB236 million [6][22] - Operating income rose by 16% to RMB327 million, with an operating income margin of 16.8% [6][24] - Total net revenues for the second half were RMB1.1 billion, up 9.9% [22] Business Line Data and Key Metrics Changes - Client transaction value in the wealth management segment increased by 1.3% year-on-year to RMB79.8 billion [7] - Transaction value from private securities bond products surged by 98% year-on-year to RMB3.37 billion, while private equity VC products rose by 111.8% to RMB1.49 billion [8] - Assets under management (AUM) in the asset management business increased by 120.5% to RMB4.48 billion [9] Market Data and Key Metrics Changes - The total number of clients reached 141,000, rising 108% year-on-year, with active clients at approximately 44,000, an increase of 15.1% [11] - The average ticket size for private market products rose to RMB4.68 million [11] Company Strategy and Development Direction - The company aims to maintain leadership in asset-backed products while enhancing risk management and product lifecycle management [8] - A new health management franchise has been launched to complement wealth management services, targeting high net worth clients [17][19] - The company is focusing on expanding its talent base and footprint in regions with high net worth populations [13] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges from rising interest rates and geopolitical conflicts but emphasized resilience in the face of market volatility [4][5] - The company is confident in its new wealth plus health value proposition to enhance client engagement and drive long-term earnings growth [20][21] Other Important Information - The company has appointed an independent director to strengthen corporate governance, with independent directors now holding half of the board seats [14] - Hywin has been recognized as the best wealth manager in Greater China for three consecutive years [16] Q&A Session Summary Question: How will the healthcare acquisitions enhance growth and earnings? - The management highlighted significant growth opportunities in the high-end health management sector and the integration of acquired companies to create a one-stop health management platform [30][31][33] Question: How have client asset allocation preferences shifted in the current economic environment? - The management noted a shift towards asset-backed products with stable returns and a growing interest in offshore products due to currency risk hedging [36][38] Question: How does the company identify competitive fund managers in a volatile market? - The management emphasized the importance of selecting the right strategies and highlighted that 70% of their private fund products achieved positive returns despite market challenges [41][42]
Hywin Holdings(HYW) - 2022 Q4 - Earnings Call Transcript