BitVentures Ltd. Q4 FY2023 earnings call

• Market Context: Global and Chinese economies recovered post-pandemic but China had market volatilities and uncertain investment sentiment.
• Strategy Adjustment: Adapted to market changes, focusing on asset-backed, protection, discretionary products in wealth management; health management became second growth driver with 20x y-o-y growth.
• Client Base: Total client base 153,000 (8.2% y-o-y growth), active clients nearly 47,000 (6.5% y-o-y growth), repeat investment rate 82%.
• Technology and Awards: Launched digital platforms like HIPA intelligence asset allocation system; obtained over 30 software copyrights; won awards such as Best Wealth Manager of Greater China 2023.

In fiscal year 2023, Hywin's net revenues were RMB2.09 billion, up 7.7% y-o-y. For the wealth management segment, full fiscal year revenue was RMB1.9 billion, up 2.6%. Transaction value in wealth management products totaled RMB72.6 billion, down 9% y-o-y; insurance business saw 262% y-o-y growth with international insurance products transaction value at RMB460 million. The asset management segment had full fiscal year revenue of RMB32.6 million, up 67%; total asset under management increased 90.8% y-o-y to RMB8.5 billion, with EAM AUM reaching $1.0 billion, up 72% y-o-y. The health management segment had net revenues of RMB87.8 million in fiscal year 2023, with health screening accounting for RMB23.4 million (avg revenue per visit RMB2,904) and health management accounting for RMB64.4 million (avg revenue per client RMB22,613).

• Wealth Management: May see rebound in NAV-based products if market conditions support.
• Health Management: May invest more in health management but focus on tightening cost control.
• Asset Management: Plan to expand EAM business to a wider client base.

• Market Volatility: China markets remained volatile with uncertain investment sentiment.
• Real Estate Impact: Real estate industry dislocations and deleveraging process affecting market conditions.
• Cost Control: Health management had net losses, need to tighten cost control at individual health clinics.

Q: At what stage is Hywin’s current diversification strategy in?

A: Diversification in product, geographical, and business segments; focusing on products (e.g., NAV-based, private market products), geographical presence (domestic and international), and the Wealth plus Health strategy.

Q: Impact of real estate industry on Hywin's wealth management?

A: Real estate is a factor, but Hywin's wealth management products are dynamic, and they don't take risk positions in distributed products; the company is selective with credit quality of fixed income products.

Q: Market share and client sentiment impact?

A: Hywin not much impacted due to proactive client management and product strategy; optimistic on China's policy support with recent measures to stabilize economy.

Q: Higher prices in health management?

A: Higher prices due to top-notch equipment, services, holistic approach, and strong demand for high-end health services among high-net-worth population