Santech Holdings Limited

For the six months ended June 30, 2023, total net revenues were RMB1.1 billion, down 0.5%. Full-year fiscal 2023 net revenues were RMB2.09 billion, up 7.7%. Wealth management revenue was RMB1.9 billion for the full year, up 2.6%; asset management revenue was RMB32.6 million, up 67%; and Hywin Health revenue was RMB87.8 million, with a net loss of RMB112.8 million. Full-year income from operations was RMB197.4 million, down 39%, and reported net income was RMB100.3 million, down 49%; diluted EPS was RMB4.48 and basic EPS was RMB4.64. Cash and cash equivalents plus restricted cash were RMB945.9 million as of June 30, 2023. Management did not provide formal next-quarter or full-year guidance on the call, but said it may add investment in Hywin Health while tightening clinic-level cost control, and that it expects to be positioned for a rebound in NAV-based products if market conditions improve.

Wang Dian framed fiscal 2023 as a year of adjustment and transformation amid a volatile Chinese market and a broader post-COVID recovery. She said Hywin proactively shifted its mix toward more resilient products, expanded its health management business, and pushed its global asset allocation capabilities. Her tone was optimistic but measured, stressing client stickiness, technology, and the long-term potential of the Wealth plus Health strategy.

Lawrence Lok said the six-month revenue was RMB1.1 billion and full-year revenue was RMB2.09 billion, with wealth management at RMB1.9 billion, asset management at RMB32.6 million, and health at RMB87.8 million. He highlighted higher costs: total operating expenses rose 17% to RMB1.9 billion, compensation and benefits were up 10% to RMB1.2 billion, and G&A rose 24.9% to RMB302.2 million, partly from technology and health-related spending. He also noted RMB945.9 million of cash and cash equivalents plus restricted cash, and said the company may continue investing in Hywin Health while tightening cost control.

Analysts asked about the stage of Hywin’s diversification strategy, and management answered that it spans three dimensions: product mix, geographic diversification, and business-segment diversification through Wealth plus Health. They said they are cautious on NAV-based and private products today but see opportunities if markets bottom, while continuing to grow in Mainland China and Hong Kong. Questions about real estate exposure and market sentiment were answered by saying Hywin does not take risk positions in distributed products and is staying focused on a simple, disciplined business model; on health pricing, management said the higher average price reflects a premium service model and demand from high-net-worth clients.