Hywin Holdings Announces Unaudited Financial Results for the 2nd Half and Fiscal Year 2023.

SHANGHAI, China: Hywin Holdings Ltd. ("Hywin" or the "Company") (NASDAQ: HYW), a leading independent wealth management service provider in China, today announced its unaudited financial results for the second half and fiscal year 2023 ended June 30, 2023.

Second Half of Fiscal Year 2023 and Fiscal Year 2023 Highlights

Total revenues demonstrated resilience against a challenging macroeconomic backdrop. Total revenues in the six months ended June 30, 2023 decreased only slightly by 0.5% to RMB1,055.8 million (US$152.5 million) from RMB1,060.9 million in the same period of 2022.

Total revenues in fiscal year 2023 increased by 7.7% to RMB2,091.8 million (US$301.3 million) from RMB1,942.1 million in fiscal year 2022.

Hywin Wealth

Number of clients1 increased by 8.2% to 152,607 as of June 30, 2023 from 141,058 as of June 30, 2022.

Number of active clients2 increased by 6.5% to 46,627 in fiscal year 2023 from 43,764 in fiscal year 2022.

Strong nationwide coverage: We maintained a strong, nationwide footprint with 1,749 relationship managers and 185 wealth planning centers across 91 cities in China as of June 30, 2023.

Asset management continued to demonstrate high Assets Under Management ("AUM") growth and high revenue growth. Net revenues from asset management business in fiscal year 2023 increased by 67.2% to RMB32.6 million (US$4.7 million) from RMB19.5 million in fiscal year 2022.

AUM of asset management business increased by 90.8% to RMB8,549.4 million as of June 30, 2023 from RMB4,479.7 million as of June 30, 2022.

Transaction value of other financial products, mainly comprised of overseas insurance products, in the six months ended June 30, 2023 increased by 260.3% to RMB289.4 million from RMB80.3 million in the same period of 2022.

Hywin Health

Hywin Health continued to focus on integrations and rapid growth ramp-up post our acquisitions of Grand Doctor Medical Co., Ltd., Beijing iLife3 Technology Co., Ltd. and Sincerity and Compassion Health Management Center in 2022.

Number of Hywin Health clients3 was 33,574 as of June 30, 2023.

Net revenues from Hywin Health business segment in the six months ended June 30, 2023 surged to RMB49.54 million (US$7.2 million) from RMB0.4 million in the same period of 2022.

Number of medical examination visits was 3,142 in the six months ended June 30, 2023, which generated revenue of RMB10.7 million in the same period.

Number of health management service clients was 2,078 in the six months ended June 30, 2023, which generated revenue of RMB38.9 million in the same period.

A summary of the operating results of Hywin Health's business segment is as follow:

6 months ended,

6 months ended,

6 months ended,

6/30/2022

6/30/2023

6/30/2023

RMB'000

RMB'000

USD'000

Net Revenues

422

49,537

7,153

Operating Costs and Expenses

- Health management costs

4,287

48,324

6,978

-Sales and marketing expenses

1,853

10,311

1,489

-General and administrative expenses

5,367

40,862

5,901

-Impairment loss on goodwill

-

35,412

5,114

-Impairment loss on intangible assets

-

2,210

319

-Other expenses, net

(405

)

(982

)

(141

)

Net Loss

(11,490

)

(88,564

)

(12,789

)

12 months ended,

12 months ended,

12 months ended,

6/30/2022

6/30/2023

6/30/2023

RMB'000

RMB'000

USD'000

Net Revenues

422

87,841

12,652

Operating Costs and Expenses

-Health management costs

4,287

74,476

10,727

-Sales and marketing expenses

1,853

19,706

2,838

-General and administrative expenses

5,367

67,182

9,677

-Impairment loss on goodwill

-

35,412

5,100

-Impairment loss on intangible assets

-

2,210

318

-Other expenses, net

(405

)

(1,616

)

(233

)

Net Loss

(11,490

)

(112,761

)

(16,241

)

Madame Wang Dian, Chief Executive Officer and Director of Hywin, commented, "We are pleased to report healthy growth in the...