Hywin Holdings Announces Unaudited Financial Results for the First Half of Fiscal Year 2022

Continued strong momentum in new client acquisition Significant progress in diversifying revenues and nurturing new businesses.

Hywin Holdings (“Hywin”), a leading independent wealth management service provider in China, today announced its unaudited financial results for the first half of fiscal year 2022 ended December 31, 2021.

First Half of Fiscal Year 2022 Highlights

• Number of clients1 increased by 12.5% to 134,656 as of December 31, 2021 from 119,687 as of December 31, 2020.
• Number of active clients2 increased by 22.0% to 35,366 in the six months ended December 31, 2021 from 28,977 in the same period of 2020.
• Number of cities with presence increased from 85 as of December 31, 2020, to 88 as of December 31, 2021, which the number of wealth service centers increased from 170 as of December 31, 2020, to 178 as of December 31, 2021.
• Aggregate transaction value of wealth management products distributed on the Company’s platform increased by 3.5% to RMB37.5 billion comparing with same period of 2020.

• Transaction value of wealth management products per relationship manager increased by 7.5% to RMB23.5 million from RMB21.9 million in the same period of 2020.
• Transaction value of private equity and venture capital funds products and hedge funds products grew 295.5% and 440.0% year-on-year respectively.

• Asset Under Management for asset management business increased by 74.2% to RMB3.27 billion, mainly driven by strong growth of our asset management business in Hong Kong SAR.
• Net revenues increased by 1.4% to RMB881.3 million (US$137.0 million) from RMB869.3 million in the same period of 2020.

• Net revenues per relationship manager increased by 4.9% to RMB553,553 from RMB527,492 in the same period of 2020.

Ms. Wang Dian, Chief Executive Officer and Director of Hywin, commented, “We are very pleased to report resilient business performance for the first half of our fiscal year 2022 despite ongoing uncertainties from COVID and the macro-economic environment in China and globally. We thank our clients for their trust and their strong demand for our services and products especially during these volatile markets. We are also pleased that on one hand, repeat investment rate from our existing clients was 81.6% in this period, while on the other hand, new client acquisition remained strong as our client growth was 12.5% year-on-year. We continue to execute our long-term strategy in strengthening our platform, investing in technology, investing in talent, and diversifying our product offerings, which we believe will allow Hywin to transform into our next phase of growth and deliver long-term value to our clients and shareholders.”

Mr. Lawrence Lok, Chief Financial Officer of Hywin, stated, “For the first half of fiscal year 2022, we achieved total net revenues of RMB881.3 million, a slight increase year-on-year, which demonstrates Hywin’s resilience in times of market uncertainties. Our diversified product offerings continued to record strong growth, as volume from our private equity and venture capital funds products and hedge funds products grew by 295.5% and 440.0% year-on-year respectively. Our asset management segment revenue maintained the growth momentum by increasing 35.1% year-on-year as we further enhance our investment capabilities. We also emphasized on strong cost and expenses discipline while strategically increased our investment in talent and technology infrastructure, in order to further build out our core platform. Our balance sheet and financial position remain solid, as liability to asset ratio further improved to 48% from 53% as of June 30, 2021.”

Recent Developments

On December 23, 2021, the Company announced the appointment of Mr. Zhu Hua as Chief Technology Officer to accelerate the digital transformation of the Company. Mr. Zhu is a renowned technology leader in China’s financial service industry, and previously worked at Microsoft, Baidu, and Ping An in senior roles across product R&D, technology management, and digital transformation. With the appointment of Mr. Zhu, the senior management team of Hywin Holdings consists of Ms. Wang Dian, Chief Executive Officer; Mr. Lok Wai, Chief Financial Officer; Mr. Liu Zheng, Chief Marketing Officer; Mr. Zhu Hua, Chief Technology Officer; Mr. Xiao Wen, Vice President of Overseas Business; and Mr. Wang Gui, Vice President of Strategy.

Considering the long-term development of the Company, the management proposed and completed the transaction acquiring the current principal office of Hywin Holdings Ltd., 3rd and 4th floor of No.8, Yincheng Middle Road, located in Lujiazui, Shanghai on December 9, 2021, which was recorded as fixed assets with net book value of RMB301.9 million as of December 31, 2021.