The latest batch of quarterly results from Hywin, which works in areas such as wealth management, showed that the Chinese organisation's fortunes are in robust shape.
Hywin Holdings, the Chinese wealth management house, said that its net income in the three months to 31 March skyrocketed 97.6 per cent from the same period a year ago to RMB61.87 million ($9.55 million), helped by a 46.5 per cent net revenue increase to RMB462 million.
Its total client base rose by 13.5 per cent to 124,043, the group said in a statement yesterday.
The aggregate transaction value of wealth management products distributed on Hywin’s platform increased by 22.5 per cent to RMB21.66 billion from RMB17.67 billion in the same period of 2020.
“These achievements attest to our effectiveness in monetising client relationships through segmented propositions and continued discovery of client needs, whilst unlocking efficiency gains through our technology and our transition into a nimble organisation. Our relationship managers continued to increase their productivity, with net revenues per relationship manager increasing by 58.3 per cent from the same period of 2020,” Wang Dian, chief executive and director of Hywin Holdings, said. “This was accomplished by our investment in training, systematic cross-selling, and a gradual move from cash-based to equity-based incentives, which encourages an entrepreneurial pursuit of long-term success.”
Net revenues from wealth management services in the quarter increased by 49.9 per cent to RMB425.50 million from RMB283.91 million in the same period of 2020, mostly due to expanded volumes in privately-raised products and the resultant increase in blended margins.
Total costs increased by 35.8 per cent to RM370.98 million from RMB273.23 million in the same period of 2020, in line with the net revenue growth.
For the quarter ending 30 June 2021, Hywin expects its net revenues to increase to between RMB480 million and RMB510 million.
Last year, Madame Wang Dian, CEO of Hywin Wealth, talked to this news service about how it worked with Hong Kong University of Science and Technology.
In July 2019 Liechtenstein’s VP Bank said it planned to build a joint wealth management platform in Hong Kong with Hywin Wealth Management (China). In 2017, Hywin Capital (UK), part of Hywin Holdings, bought Azure Wealth, a UK-based wealth management house, adding to its roster of activities in this sector across mainland China, Hong Kong, the US and UK. This is an example of how such Chinese organisations are building wealth management business pacts around the world.
In March the Shanghai-based group announced the pricing of its IPO, with plans to raise up to $48 million.
At the end of March Liechtenstein-based VP Bank and its sister businesses signed a cooperation pact with Hywin Wealth Management and associated entities to build an offshore platform pitched at wealthy Chinese clients.