Santech Holdings Ltd (STEC) 2023 Q4 法說會逐字稿

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Hywin Holdings Second Half and Fiscal Year 2023 Earnings Conference Call.

女士們、先生們，早安，晚上好。感謝各位的收看，歡迎參加海銀控股2023財年下半年及全年業績電話會議。

(Operator Instructions) Before we start, I refer you to the safe harbor statement in the company's earnings release, which also applies to the conference call today as our management will make forward-looking statements.

（操作員指示）在我們開始之前，我請您參閱公司收益報告中的安全港聲明，該聲明也適用於今天的電話會議，因為我們的管理層將做出前瞻性陳述。

On the call today are the company's Director and CEO, Madam Wang Dian and CFO, Mr. Lawrence Lok. Madam Wang will review the company's performance for the second half and fiscal year 2023. Mr. Lok will translate for Madam Wang. Then Mr. Lok will discuss the financials. We will be hosting a question-and-answer session after the management's prepared remarks. You may refer to your financial results of second half and fiscal year 2023 on the company's IR website at ir.hywinwealth.com.

今天的電話會議由公司董事兼執行長王典女士和財務長駱先生主持。王典女士將回顧公司2023財年下半年及全年業績。駱先生將為王典女士翻譯。之後，駱先生將討論公司財務狀況。在管理階層發言結束後，我們將安排問答環節。您可以在公司投資人關係網站ir.hywinwealth.com上查閱2023財年下半年及全年財務表現。

I will now turn the call over to Director and CEO of Hywin Holdings, Madam Wang Dian. Madam Wang, please proceed.

現在我將電話轉給海銀控股董事兼執行長王典女士。請王女士繼續發言。

(foreign language)

（外語）

[Interpreted] Hello, everyone, and welcome to the Hywin Holdings Earnings Call for the Second Half and Full Year of Fiscal year 2023. On today's call, I will review the results first and provide updates regarding the significant progress we have achieved across each of the company's main business segments. After that, I will turn the call over to Mr. Lawrence Lok, our Chief Financial Officer, to provide greater details on the company's financial performance.

[口譯] 大家好，歡迎參加海銀控股2023財年下半年及全年業績電話會議。在今天的電話會議中，我將先回顧業績，並介紹公司各主要業務板塊的重大進展。之後，我將把電話交給財務長駱先生，他將詳細介紹公司的財務表現。

(foreign language)

（外語）

[Interpreted] During this past fiscal year, both the global and the Chinese economies have shifted from a tumultuous pandemic period towards a phase of moderate recovery. However, while there are significant post-COVID rebounds in many areas, the overall markets in China have remained [influx], grappling with ongoing volatilities and uncertainties, and a muted investment sentiment overall. Amidst these challenges, Hywin has taken a proactive approach, and we quickly adapted our strategy to respond to the changing market environment, and we rapidly advanced our businesses in health management, asset management and overseas businesses.

[解讀] 在過去的財年，全球和中國經濟都已從動盪的疫情時期轉向溫和復甦。儘管許多地區在疫情後出現了顯著的反彈，但中國整體市場依然保持低迷，持續的波動性和不確定性以及低迷的投資氛圍依然存在。面對這些挑戰，海銀積極應對，快速調整策略以應對不斷變化的市場環境，健康管理、資產管理和海外業務均取得了快速發展。

In fiscal year 2023, the inaugural year of our Wealth plus Health dual platform strategy, Hywin achieved remarkable net revenues of RMB 2.09 billion, representing 7.7% year-on-year growth. Our strong business performance in traditional wealth management products served as a foundation while we actively developed new avenues and new ventures to drive growth and diversify our revenues.

2023財年，作為「財富+健康」雙平台策略的元年，海銀財富實現了令人矚目的淨收入，達人民幣20.9億元，年增7.7%。我們以傳統財富管理產品業務的強勁表現為基石，同時積極拓展新通路、新業務，以驅動成長並實現營收多元化。

(foreign language)

（外語）

[Interpreted] In our wealth management business, we have adeptly responded to market shifts in this period by increasing our product focus on asset-backed products, protection products, as well as discretionary products to meet our high net worth clients' demand for both diversification as well as stability in this post-pandemic period. These products characterized by their strong resilience during a time of volatilities and uncertainties offer our clients stable returns and the ability to expand market cycles.

[解讀] 在我們的財富管理業務中，我們巧妙地應對了疫情期間的市場變化，將產品重點放在資產支持型產品、保障型產品以及全權委託型產品上，以滿足高淨值客戶在後疫情時代對分散化和穩定性的需求。這些產品在波動性和不確定性時期具有強大的韌性，能夠為客戶提供穩定的收益，並具備擴展市場週期的能力。

Meanwhile, our health management business has now emerged as a second growth driver and demonstrated rapid growth in its inaugural year, generating net revenues of nearly RMB 90 million, which is more than 20x year-on-year growth. Our Health business is starting to play an increasing role for expanding our client trust and loyalty in us and providing clients with more comprehensive services across their full life cycle.

同時，我們的健康管理業務已成為公司第二成長引擎，並在成立首年就展現出快速成長的勢頭，淨收入近9,000萬元人民幣，較去年同期成長超過20倍。我們的健康業務在提升客戶信任度和忠誠度，以及為客戶提供更全面的全生命週期服務方面發揮著越來越重要的作用。

Since Hywin's IPO, we have taken proactive steps to diversify our business mix, expand global asset allocation for clients and make a successful entry into the health management industry. These strategic initiatives serve both as new growth catalysts as well as performance stabilizers, particularly during cyclical market downturns.

自海銀資本上市以來，我們積極推動業務多元化，拓展客戶全球資產配置，並成功進軍健康管理產業。這些策略舉措既是新的成長催化劑，也是業績穩定器，尤其是在周期性市場低迷時期。

Next, let's take a look at the performance of each segment.

接下來我們來看看各板塊的表現。

(foreign language)

（外語）

[Interpreted] In the Wealth Management segment during fiscal year 2023, the domestic financial market faced challenges from both the supply side where asset quality and asset performance was weak as well as on the demand side where investor sentiment was soft. In addition, there was increasing competition from U.S. dollar assets given high interest rate differentials. As a result, this was reflected in the changes in our product mix during this period.

[解讀] 2023財年，財富管理業務領域面臨挑戰，一方面是供給面資產品質和資產表現疲軟，另一方面是需求面投資者情緒低迷。此外，由於利差較大，來自美元資產的競爭日益激烈。這些因素反映在我們產品組合的調整上。

Overall, the transaction value in the wealth management product -- in the Wealth Management segment totaled RMB 72.6 billion, a 9% year-on-year decline amongst which asset-backed products accounted for RMB 66.6 billion, representing a 5.8% year-on-year decrease as we were more selective with our products in this period.

整體來看，財富管理板塊的理財產品交易金額為726億元，較去年同期下降9%。其中，資產支持產品交易金額為666億元，年減5.8%，主要是因為本期我們對產品的篩選更加嚴格。

On the other hand, our insurance business made great advances achieving a remarkable 262% year-on-year growth in the transaction value of international insurance products reaching RMB 460 million.

另一方面，保險業務取得長足進步，國際保險產品交易金額較去年同期成長262%，達到4.6億元。

(foreign language)

（外語）

[Interpreted] In the Asset Management segment, total asset under management, AUM, increased by 90.8% year-on-year, reaching RMB 8.5 billion. Notably, 82% of the AUM was contributed by clients acquired outside of Mainland China. The global nature of our client base and their investing activities is a reflection of the success of our global strategy. In the second quarter of this calendar year, we recruited a team to target Middle East and South Asian clients further expanding our global client coverage and tapping into new sources of wealth.

[解讀] 資產管理業務方面，總資產管理規模（AUM）較去年同期成長90.8%，達到人民幣85億元。值得注意的是，82%的AUM來自中國大陸以外的客戶。我們客戶群的全球化及其投資活動體現了我們全球策略的成功。今年第二季度，我們招募了一支團隊，專注於中東和南亞客戶，進一步擴大我們的全球客戶覆蓋範圍，並挖掘新的財富來源。

Hywin International's EAM, external asset management business model is the flagship product of our Asset Management segment and has achieved exceptional success with AUM reaching USD 1 billion in fiscal year 2023, representing a year-on-year growth of 72.6%. The EAM business model is a sophisticated asset management business model combining intellect driven active management, multi-asset class investing as well as global booking and global execution. Hywin's EAM business is highly regarded by our ultra-high net worth clients in Asia Pacific. The high standards set by Hywin's EAM business can also act as a catalyst and in turn, help us coach the advisory skills and client servicing skills of all of Hywin's relationship managers.

海銀國際的外部資產管理（EAM）業務模式是我們資產管理板塊的旗艦產品，並取得了卓越的成就，2023財年的資產管理規模達到10億美元，年增72.6%。 EAM業務模式是一種成熟的資產管理業務模式，融合了智慧驅動的主動管理、多資產類別投資以及全球預訂和全球執行。海銀的EAM業務深受我們亞太區超高淨值客戶的高度認可。海銀EAM業務的高標準也起到了催化劑的作用，幫助我們提升所有客戶經理的諮詢技能和客戶服務技能。

(foreign language)

（外語）

[Interpreted] As a fully-owned subsidiary of Hywin Holdings, Hywin International is recognized by the Hong Kong SAR government as one of the top 5 family offices and holds the Vice Chair of the Hong Kong Limited Partnership Fund Association.

【解讀】海銀國際作為海銀控股的全資子公司，被香港特區政府評為香港五大家族辦公室之一，並擔任香港有限合夥基金公會副主席。

In addition, as an example of Hywin's foray into technology-driven asset management, in 2023, we successfully launched the Global Mega-Trends Series of principal-protected notes in partnership with Leonteq AG, a Swiss fintech company, and Arta TechFin, a hybrid fintech platform in Hong Kong. This product series can help investors participate in 6 distinct and sustainable investment themes while enjoying the peace of mind of principal protection. This innovative and proprietary product series, once again, demonstrated Hywin's expertise in product R&D and risk management and help us enhance the profitability, countercyclicality and stickiness of our client AUM.

此外，作為海銀資本進軍科技驅動資產管理的典範，我們於2023年成功與瑞士金融科技公司Leonteq AG以及香港混合金融科技平台Arta TechFin合作，推出了「環球大趨勢系列」保本票據。此產品系列可協助投資人參與六大獨特且永續的投資主題，同時享受本金保障的安心。這一系列創新且自主研發的產品再次展現了海銀資本在產品研發和風險管理方面的專業實力，並協助我們提升客戶資產管理規模的獲利能力、逆週期性和客戶黏性。

The success of Hywin's Asset Management business in an international market that is dominated by global incumbents is the strong endorsement of our investment management expertise and product know-how. We plan to expand this business and deepen our penetration with a wider client base going forward.

海銀資產管理業務在由全球知名企業主導的國際市場中取得的成功，充分證明了我們投資管理專業知識和產品技術的優勢。未來，我們計劃進一步拓展該業務，並深化滲透，拓展更廣泛的客戶群。

(foreign language)

（外語）

[Interpreted] As of June 30, 2023, our total client base reached 153,000, reflecting an 8.2% year-on-year increase. Of those, nearly 47,000 were active, up 6.5%. The repeat investment rate amongst our clients stood at 82%. These statistics underscore the trust that high net worth individuals play in Hywin. Their strong trust in our relationship managers and their strong loyalty to our investment platform even in the face of market challenges.

[解讀] 截至2023年6月30日，我們的客戶總數達15.3萬，年增8.2%。其中，活躍客戶近4.7萬，成長6.5%。客戶重複投資率高達82%。這些數據充分體現了高淨值人士對海銀的信任。他們對我們的客戶經理充滿信心，即使在市場挑戰面前，他們依然對我們投資平台保持高度忠誠。

Within our ultra-high net worth clients here, 36% are domiciled outside of Mainland China, which demonstrates Hywin's client acquisition and client servicing capabilities in both domestic and international markets.

在我們這裡的超高淨值客戶中，36% 的居民來自中國大陸以外，這反映了海銀在國內和國際市場的客戶獲取和客戶服務能力。

Meanwhile, we remain committed to attracting top-tier talents. Actively growing our relationship managers team and enhancing the footprint of our wealth servicing centers across key regions in China. As of June 30, 2023, our total number of relationship managers reached 1,749, a 3.1% increase year-on-year. We have successfully expanded our reach to cover 91 cities, key cities with a robust network of 185 wealth servicing centers reflecting sustained growth from the previous year. With this foundation, we seek to vigorously develop our health management business as well and unlock the synergies between the infrastructure and client base of our Wealth business and the expansion of client proposition and client engagement driven by our Health business.

同時，我們持續致力於吸引頂尖人才。積極壯大客戶經理隊伍，並加強財富服務中心在中國重點區域的佈置。截至2023年6月30日，我們的客戶經理總數達1,749名，年增3.1%。我們的服務網絡已成功覆蓋91個城市，其中重點城市擁有185家財富服務中心，保持了持續成長。在此基礎上，我們力求大力發展健康管理業務，並釋放財富業務的基礎設施和客戶基礎與健康業務驅動的客戶主張和客戶參與度拓展之間的協同效應。

(foreign language)

（外語）

[Interpreted] In fiscal year 2023, Hywin Health recorded net revenues of RMB 87.8 million, amongst which the Health Screening segment accounted for RMB 23.4 million with an average revenue per visit of [RMB 2,904], while the Health Management segment accounted for RMB 64.4 million with an average revenue per client of RMB 22,613. Our premium pricing and health management reflects our premium positioning and providing high-end medical screening and high-end medical management -- health management services for high net worth individuals.

【解讀】2023財年，海銀健康淨收入達8780萬元人民幣，其中健康體檢業務淨收入達2340萬元人民幣，平均每次就診收入達2904元人民幣；健康管理業務淨收入達6440萬元人民幣，平均每位客戶收入達22613元人民幣。我們的高端定價和健康管理服務體現了我們為高淨值人士提供高端體檢和高端醫療管理的高端定位。

Industry research data shows that medical and health services is one of the largest categories of nonfinancial services demanded by high net worth individuals as the affluent population in China continues to grow and age, demand for high-end health management services is becoming increasingly critical. Yet this market segment is currently underserved as it requires a high level of expertise, privacy, access to global solutions as well as top-notch client experience.

產業研究數據顯示，醫療保健服務是高淨值人士需求最大的非金融服務類別之一。隨著中國富裕人群的不斷增長和老化，對高端健康管理服務的需求日益增長。然而，由於醫療保健服務需要高水準的專業知識、隱私保護、全球解決方案以及一流的客戶體驗，目前該細分市場尚未充分服務。

Since the launch of Hywin Health, we have been integrating our 5 professional health management clinics into our daily operations and expanded their advanced health management technologies, hardware, service models from developed markets, including the United States, Germany and Japan. Our vision is to further build out our online health management platform and our offline one-stop health management services as 2 strategic levers in 1 ecosystem in order for us to grow and further monetize on our high net worth client base.

自海銀健康成立以來，我們一直致力於將旗下五家專業健康管理診所整合到日常營運中，並從美國、德國和日本等已開發市場引進先進的健康管理技術、硬體和服務模式。我們的願景是進一步建構線上健康管理平台和線下一站式健康管理服務，使其成為一個生態系統中的兩大策略槓桿，從而促進我們高淨值客戶群的成長並進一步實現盈利。

(foreign language)

（外語）

[Interpreted] One of our core digital strategies is the digitization of our clients' health management records. We have built out a digital health cloud platform to achieve centralized management and protection of client data as well as digital management of our products and supply chain. We have accumulated over 110,000 health data assets to support a centralized planning and management of our businesses. At the same time, we also began to utilize digital technologies such as [VR stores] and AI health assessment to improve our seamless online plus offline client experience.

[解讀] 我們的核心數位化策略之一是客戶健康管理記錄的數位化。我們建構了數位健康雲端平台，實現了客戶資料的集中管理和保護，以及產品和供應鏈的數位化管理。我們累積了超過11萬個健康數據資產，支援業務的集中規劃和管理。同時，我們也開始運用VR門市、AI健康評估等數位化技術，提升線上線下無縫銜接的客戶體驗。

Going forward, we are fully dedicated to further expanding the growth of our health management business, leveraging our 5 health management clinics in Beijing, Shanghai, Chengdu and Chongqing. We plan to establish additional presence in other first-tier or second-tier cities in China. We seek to grow our healthcare offerings and expand into new markets, which may include organic build-outs, acquisitions, investments, joint ventures or other growth avenues.

展望未來，我們將全力以赴，進一步拓展健康管理業務，並充分利用我們在北京、上海、成都和重慶的五家健康管理診所。我們計劃在中國其他一線或二線城市拓展業務。我們致力於拓展醫療保健服務，並拓展新市場，這包括內部建設、收購、投資、合資或其他成長途徑。

(foreign language)

（外語）

[Interpreted] Hywin's investment in digital technology is embedded in not only the Health Management segment, but also our Wealth Management business. We take a client-centric approach and created HIPA intelligence asset allocation system and the X-Link Big Data service platform. These platforms enhance our asset allocation consultation, risk management and client processes. We provide investors with personalized asset allocation solutions by anticipating client needs and giving clients insightful guidance.

[解讀] 海銀對數位科技的投入不僅體現在健康管理領域，也體現在財富管理領域。我們秉持以客戶為中心的理念，打造了HIPA智慧資產配置系統和X-Link大數據服務平台。這些平台提升了我們的資產配置諮詢、風險管理和客戶流程。我們透過預測客戶需求並給予富有洞察力的指導，為投資者提供個人化的資產配置解決方案。

Moreover, our dedicated fund trading platform Invest Path is specialized for institutional clients, which improves trading efficiency and ensuring high-quality execution experience. With the use of technology, our online transaction rate for institutional clients has now reached 99%, and account opening processing now takes 30 minutes instead of previously 2 days. And transaction execution now takes 3 minutes instead of previously 1 day, thereby greatly enhancing our efficiency for institutional clients.

此外，我們為機構客戶打造的基金交易平台Invest Path，提升了交易效率，並確保了高品質的執行體驗。透過科技手段，我們機構客戶的線上交易率現已達到99%，開戶流程從先前的2天縮短至30分鐘，交易執行從先前的1天縮短至3分鐘，大幅提升了機構客戶的效率。

In addition to leveraging technology to empower products and services, our digital technologies today also underline how we run our businesses. Digitizing our operations and processes has helped us become a more agile organization, reducing operating efficiencies and promoting scientific data-driven decision-making across the firm.

除了利用科技賦能產品和服務之外，如今的數位技術也強化了我們的業務運作方式。營運和流程的數位化幫助我們變得更加敏捷，降低了營運效率，並在整個公司範圍內促進了基於數據的科學決策。

To date, we have obtained over 30 software copyrights and our subsidiary Hywin Technology has recently gained official recognition as a national high-tech enterprise and has been named on the list of specialized, refined, distinctive and innovative small, medium enterprises in Shanghai.

目前，公司已獲得30多項軟體著作權，旗下海銀科技近期被認定為國家高新技術企業，並被評為上海市「專精特新」中小企業。

(foreign language)

（外語）

[Interpreted] Hywin's corporate governance, institutional platform and client reputations have been widely recognized in the industry, earning us numerous awards and accolades. On June 1st this year, Hywin Holdings was named the Best Wealth Manager of Greater China 2023 by WealthBriefingAsia. This is the third consecutive year that Hywin has been named for this award. On August 12 this year, Hywin Wealth was honored as an Outstanding Wealth Manager at the 2023 China Asset Management Annual Conference and China Asset Management Golden Shell Awards, hosted by the 21st Century Business Herald.

【解讀】海銀財富的公司治理、機構平台和客戶口碑獲得業界廣泛認可，並榮獲多項殊榮。今年6月1日，海銀控股榮獲WealthBriefingAsia評選的「2023大中華區最佳財富管理機構」。這是海銀財富連續第三年獲此殊榮。今年8月12日，海銀財富在《21世紀經濟報道》主辦的2023年中國資產管理年會暨中國資產管理金貝獎頒獎典禮上，榮獲「傑出財富管理機構」稱號。

On June 8 this year, at the 2023 ESG Practice, 50 Responsible Listed Companies Award of The Economic Observer, Hywin Holdings was recognized for our ESG contributions, Hywin is recognized as one of the few industry leaders who pioneered and champion ESG values in our industry. On May 19, Hywin Wealth won number 3, amongst the Top 5 2022 Most Competitive Wealth Management Institutions by ChinaVenture, Hywin's dual-platform strategy and notable advances in digital transformation were recognized.

今年6月8日，在《經濟觀察家》評選的2023年度ESG實踐－50家責任上市公司評選中，海銀控股因其在ESG領域的貢獻而備受認可，被譽為行業中少數率先踐行ESG價值觀的領軍企業之一。 5月19日，海銀財富榮登投中網「2022年度最具競爭力財富管理機構五強」榜單第三名，海銀的雙平台策略和數位轉型的顯著進展獲得認可。

(foreign language)

（外語）

[Interpreted] In closing, as we concluded fiscal year 2023, there was a year of change and transformation for Hywin, we made proactive adjustments to our product mix and our business strategy in response to market changes. We achieved steady revenue growth. And we're proud of our client stickiness as our clients stayed with us during the market downturns, as demonstrated in our client repeat investment rate at 82% this year.

[解讀] 最後，2023財年即將結束，對海銀來說，這是變革與轉型的一年。我們積極調整產品組合和業務策略，以因應市場變化。我們實現了穩定的收入成長。我們為客戶忠誠度感到自豪，因為在市場低迷時期，客戶仍選擇與我們合作，今年客戶重複投資率高達82%。

We strengthened our core platform capabilities, and we incentivized our relationship managers to upgrade their skill sets and further expanded the use of technology across our businesses and processes. The resilience of our performance this year once again give us the confidence to grow and position ourselves for future market cycles and market opportunities. We stay optimistic about Hywin's future, just as we are excited with the enormous potential of China's wealth management industry going forward.

我們強化了核心平台能力，激勵客戶經理提陞技能，並進一步擴大了科技在業務和流程中的應用。今年業績的強勁韌性再次增強了我們發展的信心，讓我們更能掌握未來的市場週期和機會。我們對海銀的未來充滿信心，正如我們對中國財富管理產業未來的巨大潛力感到興奮。

Thank you, Madam Wang, and thank you all for joining us today. Before we begin our detailed financial discussions, please note that unless otherwise stated, all financial numbers presented today are in Renminbi terms, while comparisons are made on a year-over-year basis.

謝謝王女士，也謝謝各位今天的到來。在我們開始詳細的財務討論之前，請注意，除非另有說明，今天呈現的所有財務數據均以人民幣計算，而比較數據則按同比計算。

I will now present our financial results for the second half and fiscal year 2023 ended June 30. In the 6 months ended June 30, 2023, our total net revenues were CNY 1.1 billion, down 0.5%. Total net revenues for the full fiscal year was CNY 2.1 billion, up 7.7%. Looking at our revenue breakdown. Revenue for our Wealth Management segment was CNY 1.9 billion for the full fiscal year, up 2.6%. The year-on-year growth was primarily driven by strong sales performance of other financial products, which increased to more than threefold to CNY 302.1 million, mainly attributed to surging insurance demand post-COVID.

現在，我將報告我們截至6月30日的2023財年下半年及全年的財務表現。截至2023年6月30日的六個月，我們的總淨收入為人民幣11億元，下降0.5%。全年總淨收入為人民幣21億元，成長7.7%。縱觀我們的收入組成，財富管理業務全年收入為人民幣19億元，成長2.6%。年成長主要得益於其他金融產品的強勁銷售業績，這些產品銷售額增長了兩倍多，達到人民幣3.021億元，這主要得益於新冠疫情後保險需求的激增。

We adjusted our product offering strategy in the face of market volatilities and uncertainties to emphasize more on protection and wealth preservation. We also reduced the supply of our traditional asset-backed wealth management products during this period as we were more selective on the credit quality of fixed income products. NAV-based products also declined as a result of weak overall Chinese equities markets. Revenue from private market investment products declined by 10.4% to CNY 1.6 billion, while revenue from public market investment products increased by 45% to CNY 20.5 million.

面對市場波動和不確定性，我們調整了產品策略，更重視保障和財富保值。在此期間，我們也減少了傳統資產支持型理財產品的供應，因為我們對固定收益產品的信用品質更加挑剔。由於中國股市整體疲軟，以資產淨值為基礎的產品也出現下滑。私募市場投資產品收入下降10.4%至16億元人民幣，而公開市場投資產品收入成長45%至2,050萬元。

Revenue from our Asset Management segment for the full fiscal year was CNY 32.6 million, up 67%. Asset management continues to contribute high growth to our revenues, mainly due to increases in clients assets under management, AUM. We maintained our leadership in EAM in Hong Kong, where client AUM increased by 72% to USD 1.0 billion.

資產管理業務全年收入為3,260萬元人民幣，成長67%。資產管理業務持續為我們的收入貢獻高成長，主要得益於客戶資產管理規模（AUM）的成長。我們持續在香港地區的EAM領域維持領先地位，客戶資產管理規模成長72%，達到10億美元。

Hywin Health segment revenue and net losses for the full fiscal year was CNY 87.8 million and minus CNY 112.8 million, respectively. Hywin Health revenue grew rapidly this year as we focused on integration and capacity ramp-up post acquisitions this year. We may seek to make additional investments in Hywin Health going forward in order to expand our Hywin Health footprint, while we will also focus on further tightening our cost control to improve net losses at individual Hywin Health clinics.

海銀健康全年營收為8,780萬元人民幣，淨虧損為負1.128億元。由於我們專注於整合併購業務，海銀健康今年營收成長迅速。未來我們可能會尋求對海銀健康進行額外投資，以擴大我們的業務版圖，同時我們也將專注於進一步加強成本控制，以改善海銀健康各診所的淨虧損。

On the cost and expense side, total operating cost and expenses for the full fiscal year was CNY 1.9 billion, up 17%. Compensation and benefits increased 10% to CNY 1.2 billion, which is in line with the increases in the number of relationship managers and increases in the transaction value of overseas insurance products. Health related costs was CNY 74.5 million, sales and marketing expenses increased only slightly by 2% to CNY 318 million. General and administrative expenses increased 24.9% to CNY 302.2 million, primarily due to increased personnel and infrastructure expenses in technology as well as new expenses related to the Health Management segment.

成本費用方面，全年總營運成本及費用為人民幣19億元，成長17%。薪資及福利成長10%，達到人民幣12億元，與客戶經理數量的成長和海外保險產品交易金額的成長一致。健康相關成本為人民幣7,450萬元，銷售及市場推廣費用僅小幅增長2%，達3.18億元。一般及行政費用成長24.9%，達到人民幣3.022億元，主要原因是科技領域人員及基礎建設支出增加，以及與健康管理業務相關的新增支出。

Our income from operations for the full year was CNY 197.4 million, down 39%. Reported net income for the full fiscal year was CNY 100.3 million, down 49%. Our earnings per ADS for the full fiscal year was CNY 4.64 on a per ADS on a basic basis and CNY 4.48 per ADS on a diluted basis. As of June 30, 2023, we had CNY 945.9 million in cash and cash equivalents and restricted cash on hand. We believe our strong cash flow generation, together with our strong balance sheet has provided us with significant opportunities for further growth and further value creation going forward.

我們全年營業利潤為人民幣1.974億元，下降39%。全年淨利為人民幣1.003億元，下降49%。全年每股美國存託憑證收益（基本收益）為人民幣4.64元，攤薄收益為人民幣4.48元。截至2023年6月30日，我們持有現金、現金等價物及限制性現金9.459億元。我們相信，強勁的現金流產生能力以及穩健的資產負債表為我們未來進一步成長和價值創造提供了巨大的機會。

Thank you, everyone. This concludes our prepared remarks for today. And operator, we are now ready to take questions.

謝謝大家。今天的準備發言到此結束。接線員，我們現在可以回答問題了。

(Operator Instructions) Today's first question comes from [Teng ma]. Please pardon me. Today's first question comes from Sandy Mehta with Evaluate Research, please go ahead.

(操作員指示) 今天的第一個問題來自[Teng ma]。請原諒。今天的第一個問題來自Evaluate Research的Sandy Mehta，請問問題。

Pardon me, today's first question comes from Teng ma with [Harmolands Capital].

不好意思，今天的第一個問題來自[Harmolands Capital]的滕瑪。

Hello, can you hear me? I have one question, is -- at what stage is Hywin's current diversification strategy in?

你好，能聽見我說話嗎？我有個問題，海銀目前的多元化策略處於什麼階段？

(foreign language)

（外語）

[Interpreted] So thank you, [Martin] for your question. This is Lawrence here. I'll translate for Madam Wang and add some perspectives from my own as well.

[口譯] 謝謝你，[馬丁] 的提問。我是勞倫斯。我會為王女士翻譯，同時也會分享一些我自己的觀點。

So your question on diversification. I think our view on diversification, Madam Wang mentioned, at least 3 dimensions where we think of our diversification strategies. The first dimension is the product dimension. On the NAV-based products, obviously, this is a direction for us. But there are -- these are assets NAV-based products, these are asset classes that tend to be procyclical, right, not countercyclical. So we have to look at the market condition in deciding our strategies around specific products. On the private secondaries or mutual fund products, we were -- in this past year, we were cautious, right, given the ongoing market volatilities and market conditions. But we now -- increasingly, we now see opportunities as the market may seek to bottom.

所以，您關於多元化的問題。正如王女士所提到的，我認為我們對多元化的看法至少有三個維度，我們會從中考慮多元化策略。第一個維度是產品維度。就基於資產淨值的產品而言，這顯然是我們的一個方向。但有些基於資產淨值的產品，這些資產類別往往是順週期的，而不是逆週期的。因此，在製定特定產品的策略時，我們必須考慮市場狀況。對於私募二級市場或共同基金產品，考慮到持續的市場波動和市場狀況，我們在過去一年中一直保持謹慎。但現在，隨著市場可能尋求觸底，我們越來越多地看到了機會。

For longer-duration private equity in view of the overall compression in the IPO market, the strategy for us is to focus, right? Our strategy is to focus on top managers or promising large promising opportunities especially in high-tech sectors that are in line with national directions.

鑑於IPO市場整體承壓，對於長期私募股權來說，我們的策略是聚焦，對嗎？我們的策略是專注於頂級管理者或具有巨大潛力的投資機會，尤其是在符合國家發展方向的高科技領域。

For asset-backed traditional wealth management products, our strategy is to continue to stay flexible, right, and continue to be optimistic, but this is where risk management and credit quality is very key. So we will also continue, right, to introduce more fixed income plus or fixed income like wealth management products that will further diversify our asset-backed product offerings as well.

對於資產支持的傳統理財產品，我們的策略是繼續保持靈活性，並保持樂觀，但風險管理和信用品質至關重要。因此，我們也將繼續推出更多固定收益加持型或類似固定收益的理財產品，這將進一步豐富我們的資產支持產品組合。

So as we approach the end of the year and start thinking about 2024, overall, we feel that we may be positioned -- we are positioned for a rebound in NAV-based products if the market conditions support that. That's the first dimension, which is on products.

因此，隨著年底臨近，我們開始展望2024年，總體而言，我們覺得我們可能已經做好準備——如果市場條件支持，我們就能迎來基於資產淨值的產品的反彈。這是第一個維度，也就是產品層面。

The second dimension that Madam Wang was explaining was our geographical diversification. Hywin is very deeply rooted in Mainland China, perhaps differently than some of our competitors, we will continue to be committed to and continue to invest and grow in the Mainland. But at the same time, we are very fortunate that we have built a very strong international operation today based in Hong Kong. So our Hong Kong arm will -- our Hong Kong arm has historically has operated still independently, right, and follows international best practices. We're therefore unique in the sense that we have very strong offerings, both domestically as well as in Hong Kong, and we'll continue to do so in serving our clients onshore as well as offshore wealth management needs.

王女士解釋的第二個面向是我們的地域多元化。海銀財富根植於中國大陸，這或許與我們的一些競爭對手有所不同，但我們將繼續致力於在中國大陸投資發展。同時，我們非常幸運，如今已在香港建立了非常強大的國際業務。因此，我們的香港分公司－我們的香港分公司一直獨立運營，並遵循國際最佳實踐。因此，我們的獨特之處在於，無論是在國內還是在香港，我們都能提供非常強大的服務，並且我們將繼續這樣做，以滿足客戶的境內外財富管理需求。

The third dimension that Madam Wang pointed to was our business segments. We announced our Wealth Plus Health strategy as our overall future direction. We know firsthand that high net worth entrepreneurs in China have large unmet needs in respect of health management. So that is a $1 trillion industry opportunity for us, a once-in-a-decade opportunity in our view. And we're also aware that there is a generational succession industry opportunity in China's wealth management industry as the first generation of wealthy families in China pass on their wealth to their second generation. This also is a once-in-a-decade opportunity for us in our view. So yes, we view our diversification strategy and pathway to encompass all of these elements [well].

王女士提到的第三個維度是我們的業務板塊。我們宣布了「財富+健康」策略，作為我們未來的總體方向。我們親身了解到，中國的高淨值企業家在健康管理方面有著巨大的未滿足需求。因此，這對我們來說是一個萬億美元的行業機遇，在我們看來，這是一個十年一遇的機會。我們也意識到，隨著中國第一代富裕家族將財富傳承給第二代，中國的財富管理產業也存在著代際傳承的機會。我們認為，這對我們來說也是一個十年一遇的機會。所以，是的，我們認為我們的多元化策略和發展路徑能夠涵蓋所有這些要素。

Thank you next question please.

謝謝，請問下一個問題。

(Operator Instructions) The next question is from [Mr. Zhou], investor.

(操作員指示)下一個問題來自投資者[周先生]。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Thank you, Mr. Zhou. I will translate for Madam Wang. So Madam Wang pointed to the fact that the real estate industry plays a very significant role in driving the overall economy in China. Statistics show that the real estate sector accounts for more than 30% in GDP directly and indirectly. China went through a booming development phase with real estate and then there was a frothy bubble pace with real estate. Our view is that the recent dislocations in the real estate industry is actually a necessary process and a part of the sector's overall deleveraging process. And after that, we are going to see a more stable and more sensible real estate industry landscape overall.

[口譯] 謝謝周先生。我來為王女士翻譯。王女士指出，房地產業在拉動中國整體經濟方面發揮著非常重要的作用。統計顯示，房地產行業直接和間接貢獻了GDP的30%以上。中國房地產經歷了蓬勃發展的階段，之後又經歷了泡沫的爆發。我們認為，近期房地產行業的混亂實際上是一個必然過程，也是整個產業去槓桿過程的一部分。之後，我們將看到一個更穩定、更合理的房地產產業格局。

That said, we also noted a number of stimulus or relaxation policies in the sector, which we think are supportive of the investment environment in this space. For example, interest rate cuts, relaxation of first-time homebuyer benefits, urban village upgrade in 21 cities, et cetera. All these policies are aimed at improving the demand and supply balance in the fiscal sector.

儘管如此，我們也注意到該領域推出了一些刺激或放鬆政策，我們認為這些政策有利於該領域的投資環境。例如，降息、放寬首套房補貼、在21個城市實施城中村改造等等。所有這些政策都旨在改善財政部門的供需平衡。

So for us, Hywin real estate-backed wealth management products is only one of the many assets backed product that we distribute. The specific products or asset classes that we introduced to our product pipeline, on a week-to-week, month-to-month basis is a very dynamic process, right, where we take into account market factors, our house views as well as investor client demand. And we want to emphasize that unlike other players, we don't take risk positions ourselves in the products that we distribute. And we do not try to -- we did not try to make money by making leveraged bets on distressed assets, for example, trying to flip them in the past, right?

所以對我們來說，海銀房地產理財產品只是我們分銷的眾多資產支持產品之一。我們每週、每月推出的特定產品或資產類別，是一個非常動態的過程，我們會綜合考慮市場因素、我們的機構觀點以及投資者客戶的需求。我們要強調的是，與其他公司不同，我們分銷的產品本身不承擔風險。我們不會試圖——例如，我們過去沒有試圖透過對不良資產進行槓桿押注來賺錢，例如試圖轉手這些資產，對吧？

So we don't have this kind of risk exposure that some players in the market are having right now, which generally tend to be exposed when there is a market downturn like today. So it is important and Madam Wang reiterated that we stay very focused in our wealth management business, and we're very clear that we will continue to keep our business model and revenue model very simple and focused.

因此，我們不像市場上一些參與者那樣面臨風險，這些風險通常在像今天這樣的市場低迷時期才會暴露出來。因此，王女士重申，我們將繼續高度專注於財富管理業務，這一點非常重要，我們非常清楚，我們將繼續保持業務模式和收入模式的簡潔和專注。

The next question comes from Mr. Wong with [Dahao] Investment.

下一個問題來自[大豪]投資的黃先生。

(foreign language).

（外語）。

(foreign language).

（外語）。

[Interpreted] Thank you, Mr. Wong. I'll translate for Madam Wang. So we did see some market shares as well as investor sentiment and appetite changed in the past year, as you pointed out. But for us, Hywin, we were not impacted to a large extent. We believe that's because of several reasons. First, Hywin has been very proactive in our client dialogue or client expectation management, and giving our clients professional advice and insights, right? So all of these are actually very important elements in our daily business, as an independent wealth manager in keeping our clients' trust and keeping our clients focused, especially in the face of a tough market like today's.

[口譯] 謝謝黃先生。我來為王女士翻譯。正如您所指出的，過去一年我們確實看到一些市場份額以及投資者情緒和偏好發生了變化。但對於我們海銀來說，並沒有受到太大影響。我們認為有幾個原因。首先，海銀在客戶對話或客戶期望管理方面非常積極主動，並為客戶提供專業的建議和見解，對嗎？所以，所有這些其實都是我們日常業務中非常重要的因素，作為一家獨立的財富管理公司，我們能夠維護客戶的信任，讓客戶保持專注，尤其是在當今如此艱難的市場環境下。

The second is Hywin has been very proactive as I had previously pointed to with our product strategy. Basically, our goal is to offer a full shelf of products for all weathers, whether it's rainy or sunny, right? We're distributing the right products to the right clients. As I mentioned in the prepared remarks, we did emphasize more on stable products in this period, for example, right, whether it is fixed income or principal protected notes or insurance, et cetera. All of these help us and our clients in this current market environment.

第二，正如我之前提到的，Hywin 在產品策略上非常積極主動。基本上，我們的目標是提供全系列產品，無論晴天雨天，都能應付各種天氣，對吧？我們正在將合適的產品分銷給合適的客戶。正如我在準備好的演講中所提到的，我們在此期間確實更加重視穩定性產品，例如，無論是固定收益產品、保本票據或保險等等。所有這些都有助於我們和我們的客戶應對當前的市場環境。

As you mentioned about the Chinese economy, we actually stay optimistic, perhaps cautiously optimistic as well on China. We noticed that there are recently numerous policy support measures that have been announced this year so far is especially clear to us that the government's policy direction is back to supporting stability and growth in the Chinese economy, especially in the property sector, for example, as well as stimulating consumption in the Chinese economy.

正如您所提到的中國經濟，我們實際上對中國保持樂觀，或許也持謹慎樂觀的態度。我們注意到，今年以來已宣布了多項政策支援措施，這尤其清楚地表明，政府的政策方向已回歸到支持中國經濟穩定成長，尤其是在房地產領域，以及刺激中國經濟消費。

We also know that under NDRC, right, (inaudible), National Development and Reform Commission, which is under the State Council announced that it is setting up -- it set up a new China private economy bureau, meaning (foreign language) once again, very, very clear signal to us that the top Chinese regulators are focused, and they want to bring back an environment that is conducive to the private sector and private sector entrepreneurism. A lot of [high] clients are Chinese private sector entrepreneurs themselves. And I think these actions from the top will help restore confidence in the economy. Thank you.

我們也知道，在國家發改委（對，[聽不清楚]）的領導下，國務院下屬的國家發展和改革委員會宣布將成立一個新的中國民營經濟局，這再次向我們發出了非常明確的信號，表明中國最高監管機構正在集中精力，希望恢復有利於私營部門和私營企業主的環境。很多[高]客戶本身就是中國私人企業的企業家。我認為這些來自高層的措施將有助於恢復對經濟的信心。謝謝。

(foreign language).

（外語）。

(foreign language).

（外語）。

[Interpreted] Okay. Thank you, Mr. Wong. I'll translate for Madam Wang. So you're right in pointing out that we do have higher average prices in respect of our medical exam services, the medical examination services that we provide at Hywin Health is very different than those that are offered by, say, public hospitals, while the specific items may be the same, right, you may be checking out the same things, but the overall experience is very different in several aspects.

[口譯] 好的。謝謝黃先生。我來為王女士翻譯。您說得對，我們的體檢服務平均價格確實更高。海銀醫療提供的體檢服務與公立醫院等機構提供的體檢服務有很大不同。雖然具體項目可能相同，對吧，您可能檢查的是相同的項目，但整體體驗在許多方面都非常不同。

Number one is the equipment that we use, we insist on using top-notch equipment that we acquired domestically or globally. And the second is services. We put a lot of emphasis on services. That includes, for example, the time and the consultation that our doctors will give to the clients, the one-on-one personal touch -- the personal approach that our doctors give to our clients is very important.

首先是我們使用的設備，我們堅持使用從國內或全球採購的頂級設備。其次是服務。我們非常重視服務。例如，這包括我們醫生為客戶提供的時間和諮詢，以及一對一的個人化服務——我們醫生為客戶提供的個人化服務非常重要。

Madam Wang also pointed to the environment, which we believe is also very important to the client experience. It's important to emphasize that the Hywin Health approach is to really treat our clients holistically. It is not just a onetime sort of consultation and be done, right? It's really a personalized and customized approach -- servicing approach that we take.

王女士也提到了環境，我們認為環境對客戶體驗也至關重要。需要強調的是，海銀醫療的概念是真正全方位對待客戶。這不僅僅是一次性的諮詢，對吧？我們採取的是個人化、客製化的服務方式。

And lastly, Madam Wang's view is that the fact that we were able to command a higher average price in this segment demonstrates that there indeed is a strong demand within the high net worth population for higher-end services in medical examination as well as in health management. Thank you.

最後，王女士認為，我們能夠在這個細分領域獲得更高的平均價格，顯示高淨值人士對高端體檢和健康管理服務的需求確實強勁。謝謝。

Any more questions?

還有其他問題嗎？

As there are no further questions at this time, this concludes our conference call. You may now disconnect your lines. Thank you for your participation.

目前沒有其他問題，我們的電話會議到此結束。您可以掛斷電話了。感謝您的參與。

Thank you.

謝謝。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本記錄中標記為 [已翻譯] 的部分由現場翻譯人員朗讀。 ]