Among the details of its report, the firm said that its client headcount has surged rapidly in the latest three-month period of its financial accounts.

Hywin Holdings, the Chinese wealth management business, yesterday reported a 43 per cent year-on-year gain in net revenue to RMB502.3 million ($77.78 million) for the three months to 30 June.

Net income surged 111.1 per cent to RMB62.10 million, the group said in a statement. 

The number of clients rose by 12.5 per cent to 127,317 from 113,146 in the same period of 2020; the number of active clients rose by 17.6 per cent to 29,094 from 24,734 in the same period of 2020.

The aggregate transaction value of wealth management products distributed on Hywin’s platform increased by 39.3 per cent to RMB20.89 billion. The transaction value of wealth management products per relationship manager increased by 53.8 per cent to RMB14.29 million, it said.

For its 2021 financial year to end-June, net income rose 95.6 per cent to RMB207.66 million.

Elaborating further on its results, Hywin said total operating costs and expenses in the quarter ending 30 June increased by 39.3 per cent to RMB423.47 million from RMB304.08 million in the same period of 2020, in line with net revenue growth. Compensation costs and benefits in the quarter rose 41.3 per cent year-on-year, due to higher average business volumes per relationship manager. Sales and marketing costs in the quarter increased by 25.5 per cent to RMB80.15 million amidst increased marketing and sales activities. General and administrative costs increased by 29.3 per cent to RMB56.21 million.

“Our financial and operating results for the fourth quarter and fiscal year 2021 were record high. While we continued to grow our new client base, we also saw strong, recurring transaction demands from our existing users, as evident in our industry-leading 76.7 per cent repeat investment rate from our existing clients,” Wang Dian, chief executive and director of Hywin, said. “Meanwhile, we continued to diversify our product offerings and are seeing early success in several newer product categories, such as our privately-raised securities products.”

In August Hywin Holdings appointed Wai Lok (Lawrence) as chief financial officer.  

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. 

See here for a report about Hywin's IPO, held earlier this year.