Financial Data and Key Metrics Changes - For fiscal year 2023, the company achieved net revenues of RMB2.09 billion, representing a year-on-year growth of 7.7% [4][18] - Total net revenues for the second half of 2023 were RMB1.1 billion, down 0.5% compared to the previous year [18] - Reported net income for the full fiscal year was RMB100.3 million, down 49% [22] Business Line Data and Key Metrics Changes - In the wealth management segment, revenue was RMB1.9 billion for the full fiscal year, up 2.6%, driven by a threefold increase in sales of other financial products to RMB302.1 million [18][19] - The asset management segment saw revenue of RMB32.6 million, up 67%, with total assets under management (AUM) increasing by 90.8% year-on-year to RMB8.5 billion [8][19] - The health management segment generated net revenues of nearly RMB90 million, marking over 20 times year-on-year growth [5][20] Market Data and Key Metrics Changes - The transaction value in the wealth management segment totaled RMB72.6 billion, a 9% year-on-year decline, with asset-backed products accounting for RMB66.6 billion, down 5.8% [7] - The company’s client base reached 153,000, reflecting an 8.2% year-on-year increase, with nearly 47,000 active clients, up 6.5% [10] Company Strategy and Development Direction - The company has adopted a "Wealth plus Health" dual platform strategy, focusing on health management as a new growth driver [4][5] - The company aims to diversify its product offerings and expand its global asset allocation, particularly targeting high-net-worth clients [5][8] - Hywin plans to enhance its health management services and integrate advanced technologies to improve client experience [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the Chinese economy, noting government policies aimed at stabilizing growth and supporting the private sector [30] - The company remains focused on maintaining client trust and adapting its product strategy to market conditions [29][30] - Management highlighted the importance of health management services for high-net-worth individuals, viewing it as a significant growth opportunity [11][26] Other Important Information - The company has received multiple awards for its performance and governance, including being named the Best Wealth Manager of Greater China 2023 [14][15] - The company has invested in digital technology to enhance its operations and client services, achieving significant improvements in efficiency [13] Q&A Session Summary Question: What stage is Hywin’s current diversification strategy in? - Management outlined three dimensions of diversification: product, geographical, and business segments, emphasizing flexibility and responsiveness to market conditions [24][25][26] Question: How does the company view the real estate sector's impact on the economy? - Management acknowledged the real estate sector's significant role in the economy and noted recent policy measures aimed at stabilizing the market [26][27] Question: How has Hywin managed to maintain client trust amid changing market conditions? - Management attributed client retention to proactive communication and a diverse product strategy that meets client needs [28][29]
Hywin Holdings(HYW) - 2023 Q4 - Earnings Call Transcript