• Hywin Holdings Announces Unaudited Financial Results for the First Half of Fiscal Year 2024

    Источник: Nasdaq GlobeNewswire / 28 июн 2024 08:29:53   America/New_York

    SHANGHAI, June 28, 2024 (GLOBE NEWSWIRE) -- Hywin Holdings Ltd. (“Hywin” or the "Company") (NASDAQ: HYW) today announced its unaudited financial results for the first half of fiscal year 2024 ended December 31, 2023.

    The Company’s businesses and operations in China faced significant headwinds as changes in the asset management industry, overall asset valuation levels in China and the economic environment presented challenges for the Company. The redemption issues of the asset-backed products business, which the Company has now discontinued, caused disruption to Hywin’s brand and operations and affected the confidence of clients, which resulted in a significant decline in total revenues and materially negative impact on bottom line, and adversely impacted results of operations and financial conditions during the reporting period.

    As previously disclosed by the Company in our Form 6-K filed on December 14, 2023, with respect to the redemption issues of asset-backed products Hywin had historically distributed, while the Hywin Wealth Management Co. Ltd (“Hywin Wealth”), a variable interest entity in China, acted only as distributor of these products, Hywin Wealth continues to actively address these redemption issues on an ongoing basis by proactively coordinating with asset managers, relationship managers and clients to seek solutions and reduce client losses. In light of the overall liquidity conditions of the asset management industry in China, the Company estimates that it could take several years to coordinate asset managers and all clients to reach settlement.

    The Company also announced on March 27, 2024, that our Board of Directors has approved the exit from the asset-backed products business in China, and furthermore on June 28, 2024, that our Board of Directors has approved a complete exit from the wealth management and asset management business. The Company has terminated its contractual arrangements with Hywin Wealth. As a result of such termination, Hywin Wealth has ceased to be a consolidated entity of the Company. The Company also announced that it will focus on new, innovative business models in the technology sector, including, among others, new retail, social e-commerce, and metaverse industries, and is planning to change its name from Hywin Holdings Ltd. to Santech Holdings Limited, subject to shareholder approval in an extraordinary general meeting to be held in due course.

    The Company believes its business transformation will open up new opportunities for the Company. However, there are inherent uncertainties associated with such a business transformation. The Company anticipates a significant reduction in operational scale and revenue scale to persist in the near term.

    First Half of Fiscal Year 2024 Highlights

    • Total revenues in the six months ended December 31, 2023 decreased by 23.6% to RMB791.2 million (US$110.5 million) from RMB1,036.0 million in the same period of 2022.

    Hywin Wealth

    • Transaction value from discontinued business in the six months ended December 31, 2023 decreased by 38.1% to RMB24.9 billion from RMB40.2 billion in the same period of 2022.
      • Transaction value of asset-backed products in the six months ended December 31, 2023 decreased by 48.1% to RMB19.6 billion from RMB37.8 billion in the same period of 2022.
      • Transaction value of private market investment products, other than asset-backed products, in the six months ended December 31, 2023 increased by 151.9% to RMB1,977.6 million from RMB785.0 million in the same period of 2022.
      • Transaction value of public market investment products in the six months ended December 31, 2023 increased by 111.0% to RMB3,353.0 million from RMB1,588.9 million in the same period of 2022.
    • Transaction value of insurance products, which mainly refers to overseas insurance products, in the six months ended December 31, 2023 increased by 52.6% to RMB254.1 million from RMB166.5 million in the same period of 2022.
    • Credit loss in the six months ended December 31, 2023 were RMB449.0 million (US$62.7 million), mainly consisting of provisions recognized on the accounts receivable from asset managers of asset-backed products, and to a smaller extent, domestic insurance products.
    • Asset management business demonstrated continued growth in Assets Under Management ("AUM”) and net revenues. Net revenues from asset management business in the six months ended December 31, 2023 increased by 14.6% to RMB18.6 million (US$2.6 million) from RMB16.2 million in the same period of 2022.

    Hywin Health

    • Number of Hywin Health clients1 was 39,598 as of December 31, 2023.
    • Net revenues from Hywin Health business segment in the six months ended December 31, 2023, increased by 83.1% to RMB70.12 million (US$9.8 million) from RMB38.3 million in the same period of 2022.
    • Number of medical examination visits was 2,721 in the six months ended December 31, 2023, which generated revenue of RMB8.3 million.
    • Number of health management service clients was 3,302 in the six months ended December 31, 2023, which generated revenue of RMB61.8 million.
    • Impairment losses on goodwill and on long-lived assets were RMB257.7 million and RMB210.9 million respectively, relating to our previous health management acquisitions. In view of the adverse impacts to the Hywin brand, the cross-selling synergies between Hywin Wealth and Hywin Health clients, or any new client acquisition for Hywin Health, have been significantly affected. Therefore, the Company performed impairment tests on such assets as fixed-assets, intangible assets, construction in progress and goodwill to identify potential accounts for impairment. Through the impairment tests, the Company made provisions totaling RMB468.6 million for asset impairment losses, including goodwill and long-lived assets of RMB257.7 million and RMB210.9 million, respectively.

    A summary of the operating results of Hywin Health’s business segment is as follows:

     6 months ended,6 months ended,6 months ended,
     12/31/202212/31/202312/31/2023
     RMB'000RMB'000USD'000
    Net Revenues 38,304 70,146 9,798 
        
    Operating Costs and Expenses   
    -Health Management Cost26,152 54,881 7,666 
    -Sales and marketing expenses9,395 14,061 1,964 
    -General and administrative expenses26,320 38,755 5,413 
    -Credit Loss- 1,032 144 
    -Impairment loss on goodwill- 257,712 35,997 
    -Impairment loss on long lived assets- 210,916 29,460 
    Total Operating Costs and Expenses61,867 577,357 80,644 
        
    Net Loss(24,197)(491,502)(68,652)


    First Half of Fiscal Year 2024 Financial Results

    Net Revenues

    Total revenues in the six months ended December 31, 2023 decreased by 23.6% to RMB791.2 million (US$110.5 million) from RMB1,036.0 million in the same period of 2022, mainly due to decreases in net revenues from wealth management business resulting from a weak economic and industry environment, as well as the redemption issues reported in December 2023. The decreases were partially offset by revenue growth from Hywin Health and asset management business.

    • Net revenues from wealth management services in the six months ended December 31, 2023 decreased by 28.1% to RMB697.8 million (US$97.5 million) from RMB970.2 million in the same period of 2022, in line with the decrease in transaction value.
      • Net revenues from insurance brokerage services, which mainly refers to overseas insurance products, in the six months ended December 31, 2023 increased by 122.1% to RMB151.3 million (US$21.1 million) from RMB68.1 million in the same period of 2022, mainly due to surging insurance demand post Covid reopening.
    • Net revenues from asset management services in the six months ended December 31, 2023 increased by 14.6% to RMB18.6 million (US$2.6 million) from RMB16.2 million in the same period of 2022, primarily due to an increase in AUM.
    • Net revenues from Hywin Health business segment in the six months ended December 31, 2023 increased by 83.1% to RMB70.1 million (US$9.8 million) from RMB38.3 million in the same period of 2022, in line with our strategic emphasis on health management before the redemption that occurred in December 2023.

    Operating Costs and Expenses

    Total operating costs and expenses in the six months ended December 31, 2023 increased by 101.0% to RMB1,876.9 million (US$262.2 million) from RMB933.9 million in the same period of 2022, primarily due to credit loss resulting from redemption issues and impairment loss on goodwill and long lived assets, as well as investments in health-related business.

    • Cost of compensation and benefits in the six months ended December 31, 2023 decreased by 19.4% to RMB464.1 million (US$64.8 million) from RMB576.2 million in the same period of 2022, in line with the decreases in the transaction value of wealth management business, partially offset by higher commission from insurance brokerage services.
    • Costs related to Hywin Health business segment in the six months ended December 31, 2023 increased by 109.9% to RMB54.9 million (US$7.7 million) from RMB26.2 million, in line with our increased investments to improve our health management product offerings during the reporting period.
    • Sales and marketing expenses in the six months ended December 31, 2023 decreased by 14.6% to RMB155.8 million (US$21.8 million) from RMB182.6 million in the same period of 2022, due to reduced marketing and sales activities of Hywin Wealth as a result of the decreased budget related to the decrease in transaction value.
    • General and administrative expenses in the six months ended December 31, 2023 increased by 10.3% to RMB161.3 million (US$22.5 million) from RMB146.2 million in the same period of 2022, primarily due to new expenses related to health services.
    • Credit loss in the six months ended December 31, 2023 were RMB449.0 million (US$62.7 million), mainly consisting of provisions recognized on the accounts receivable from asset managers of asset-backed products, and to a smaller extent, domestic insurance products.
    • Impairment loss on goodwill in the six months ended December 31, 2023 were RMB257.7 million (US$36.0 million), due to the performance metrics of Grand Doctor, Beijing iLife 3 Technology Co., Ltd. (“Life Infinity”), and Sincerity and Compassion Health Management Center (“Sincerity and Compassion”) failing to meet our established expectations after the acquisitions, particularly since Hywin’s brand has suffered adverse impacts as a result of the redemption issues in the wealth management segment.
    • Impairment loss on long lived assets in the six months ended December 31, 2023 were RMB332.4 million (US$46.4 million), due to the performance metrics of Grand Doctor, Life Infinity and Sincerity and Compassion failing to meet our established expectations after the acquisitions, particularly since Hywin’s brand has suffered adverse impacts as a result of the redemption issues in the wealth management segment. Impairment losses were also recorded because events or changes in circumstances led us to believe that expected future cash flow generated by the fixed-assets, intangible assets and construction in progress will be less than carrying amount.
    • Impairment loss on long term investment in the six months ended December 31, 2023 were RMB1.0 million (US$0.14 million), due to failure to achieve the expected return of the long-term investment by Shenzhen Panying Asset Management Co., Ltd.

    Loss from Operations

    As a result of the foregoing, loss from operations in the six months ended December 31, 2023 was RMB1,085.7 million (US$151.6 million), compared to income from operations of RMB102.1 million in the same period of 2022, attributable to the decreases in net revenues and the increases in operating costs and expenses.

    Net Loss

    Net loss in the six months ended December 31, 2023 was RMB1,068.8 million (US$149.3 million), compared with net income of RMB70.6 million in the same period of 2022.

    Loss per ADS

    Basic loss per ADS in the six months ended December 31, 2023 was RMB38.09 (US$5.32), compared with basic earnings per ADS of RMB2.59 in the same period of 2022.

    Diluted loss per ADS in the six months ended December 31, 2023 was RMB38.09 (US$5.32), compared with diluted earnings per ADS of RMB2.51 in the same period of 2022.

    Each ADS represents two of the Company’s ordinary shares.

    Balance Sheet

    As of December 31, 2023, the Company had RMB330.0 million (US$46.6 million) in cash, cash equivalents, and restricted cash, compared with RMB945.9 million as of June 30, 2023. The decrease was mainly attributable to our operating loss and the uncollectible accounts receivable of asset-backed products during the reporting period, as well as our acquisition of the land use rights of a real property in Boao, Hainan Province, in September 2023.

    As of December 31, 2023, the Company had RMB261.5 million (US$36.9 million) in property and equipment, RMB15.4 million (US$2.2 million) in intangible assets, and RMB129.2 million (US$18.2 million) in land use right compared with RMB349.7 million in property and equipment, RMB98.6 million in intangible assets and nil in land use right as of June 30, 2023.

    As of December 31, 2023, the Company had RMB2.3 million (US$0.3 million) in deferred tax liability compared with RMB20.0 million as of June 30, 2023.

    Subsequent Event

    In March 2024, the Company was named as a defendant in a securities class action complaint filed in the New York County Supreme Court alleging violations of the Securities Act of 1933. The Company disputes each and every claim and intends to defend against such allegations vigorously.

    Exchange Rate

    This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars in this press release were made at a rate of RMB7.08273 to US$1.00, for figures on the balance sheet as of December 31, 2023, RMB7.15934 to US$1.00 for figures on the income statement for the six months ended December 31, 2023.

    About Hywin Holdings Ltd.

    Hywin Holdings Limited, to be renamed Santech Holdings Limited, is a consumer-focused technology company. The Company historically served a large number of high net-worth clients in China in financial services and health management, and accumulated a large customer base. The Company has exited or disposed of its historical businesses in financial services and is actively exploring innovative new opportunities in technology, including but not limited to new retail, social e-commerce and metaverse. For more information, please visit https://ir.hywinwealth.com.

    Safe Harbor Statement

    This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “forecast,” “plan,” “project,” “potential,” “continue,” “ongoing,” “expect,” “aim,” “believe,” “intend,” “may,” “should,” “will,” “is/are likely to,” “could” and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    Investor Contact:
    Hywin Holdings Ltd.
    Email: ir@hywinwealth.com  

    Media Contact:
    ICR, LLC
    Edmond Lococo
    Phone: +86 138-1079-1408
    Email: HywinPR@icrinc.com

    1 Clients are those who have historically used Hywin Health’s services at least once.
    2 Health segment revenues before inter segment transactions elimination.
    3 China Foreign Exchange Trade System USD/RMB mid-point rate on December 31, 2023.
    4 An appropriately weighted average exchange rate for the reporting period.

    HYWIN HOLDINGS LTD.
    CONSOLIDATED BALANCE SHEETS    		 
     
     (unaudited)  
         
     6/30/202312/31/202312/31/2023 
     RMB'000RMB'000USD'000 
    ASSETS    
    Current assets    
    Cash and cash equivalents868,908309,495 43,697  
    Restricted cash76,97520,483 2,892  
    Term deposit28,90378,331 11,059  
    Accounts receivable, net415,134152,371 21,512  
    Deposits, prepayments and other current assets46,39244,433 6,275  
    Contract assets33,49127,442 3,875  
    Total Current Assets1,469,803632,556 89,310  
         
    Non-current assets    
    Property and equipment, net349,685261,518 36,923  
    Long-term investment1,000- -  
    Intangible assets, net98,60315,398 2174  
    Goodwill257,712- -  
    Long-term prepayments9,657- -  
    Deferred tax asset, net725401 5  
    Operating lease right-of-use assets186,3073,180 449  
    Land use right-129,210 18,243  
    Total Non-current Assets903,689409,707 57,846  
         
    Total Assets2,373,4921,042,263 147,156  
         
    LIABILITIES AND SHAREHOLDERS’ EQUITY    
    Current Liabilities    
    Commission payable172,456111,107 15,687  
    Accounts payable3,3325,295 748  
    Advance from customers39,81236,304 5,126  
    Investors’ deposit70,9346,308 891  
    Income tax payable167,798165,120 23,313  
    Due to related parties38,07338,462 5,430  
    Other payable and accrued liabilities433,217335,107 47,313  
    Operating lease liabilities83,57397,356 13,746  
    Total Current Liabilities1,009,195795,059 112,254  
         
    Non-current liabilities    
    Commission payable-non current526- -  
    Deferred tax liability20,0282,293 324  
    Operating lease liabilities, non-current100,52173,066 10,316  
    Total Non-current Liabilities121,07575,359 10,640  
         
    Total Liabilities1,130,270870,418 122,894  
         
    Mezzanine equity    
    Redeemable noncontrolling interest30,60030,600 4,320  
    Total Mezzanine equity30,60030,600 4,320  
     
         		    
    Shareholders' Equity    
    Ordinary shares3636 5  
    Additional paid-in capital515,665516,390 72,909  
    Statutory reserves128,297128,297 18,114  
    Accumulated gain (deficit)451,013(615,388)(86,886) 
    Noncontrolling interest100,93198,564 13,916  
    Other comprehensive income16,68013,346 1,884  
    Total Shareholders' equity1,212,622141,245 19,942  
         
    Total Liabilities, Mezzanine equity and Shareholder's equity2,373,4921,042,263 147,156  


    HYWIN HOLDINGS LTD.
    CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME     		 
     
    (In thousands, except for per ADS data and percentages) 
    (unaudited) 
           
     6 months ended, 6 months ended, 6 months ended,  Change 
     12/31/2022 12/31/2023 12/31/2023   
     RMB'000 RMB'000 USD'000   
    Net Revenues      
    -Wealth management970,157 697,847 97,474  (28.1)% 
    -Assets management16,203 18,572 2,594  14.6% 
    -Health management38,304 67,261 9,395  75.6% 
    -Other11,320 7,547 1,054  (33.3)% 
     Total Revenue 1,035,984 791,227 110,517  (23.6)% 
           
    Operating Costs and Expenses      
    -Compensation and benefits576,173 464,131 64,829  (19.4)% 
    -Health management costs26,152 54,881 7,666  109.9% 
    -Share-based compensation2,804 725 101  (74.1)% 
    -Sales and marketing expenses182,553 155,817 21,764  (14.6)% 
    -General and administrative expenses146,243 161,288 22,528  10.3% 
    -Credit Loss 448,982 62,713  N/A   
    -Impairment loss on goodwill- 257,712 35,997  N/A   
    -Impairment loss on long lived assets- 332,371 46,425  N/A   
    -Impairment loss on long term investment 1,000 140  N/A   
    Total Operating Costs and Expenses933,925 1,876,907 262,163  101.0% 
           
    Income (Loss) from operations102,059 (1,085,680)(151,646) (1163.8)% 
           
    Other (expenses)/income      
    -Interest income, net549 (396)(55) (172.1)% 
    -Other non-operation income, net(4,559)(63)(9) (98.6)% 
    Total Other (Expense) Income(4,010)(459)(64) (88.6)% 
           
    Income (Loss) before tax98,049 (1,086,139)(151,710) (1207.8)% 
    Income tax expense (benefits)27,467 (17,371)(2,426) (163.2)% 
    Net income (loss)70,582 (1,068,768)(149,284) (1614.2)% 
           
    Less: net loss attributable to
    non-controlling interests    		(2,033)(2,367)(331) 16.4% 
    Net income/(loss) attributable to shareholders72,615 (1,066,401)(148,953) (1568.6)% 
           
    Other comprehensive Income (loss)      
    -Foreign currency translation (loss)/gain2,456 (3,334)(466) (235.7)% 
    Comprehensive Income (loss)73,038 (1,072,102)(149,750) (1567.9)% 
           
    Less: Comprehensive Loss attributable to non-controlling interests(2,033)(2,367)(331) 16.4% 
    Comprehensive Income (Loss) attributable to shareholders75,071 (1,069,735)(149,419) (1525.0)% 
           
     Income (Loss) per ADS       
     Income (Loss) per ADS basic2.59 (38.09)(5.32) (1570.7)% 
     Income (Loss) per ADS diluted2.51 (38.09)(5.32) (1617.5)% 
               

    The Board of Directors has approved the termination of VIE agreements with Hywin Wealth Management Co., Ltd. on June 28, 2024, which resulted in the discontinued operation of onshore wealth management businesses.

    The following unaudited and unreviewed pro forma consolidated financial information reflects adjustments to the Company’s historical financial results as reported under U.S. GAAP, in connection with the termination of asset-backed products business. The unaudited and unreviewed pro forma consolidated statement of comprehensive income for the year ended June 30, 2023, has been prepared with the assumption that the termination of asset-backed products business was completed as of July 1, 2022, and the effects of the transaction are carried forward to the unaudited and unreviewed pro forma consolidated statement of comprehensive income for the six months ended December 31, 2023. The unaudited and unreviewed pro forma consolidated balance sheet as of December 31, 2023, has been prepared with the assumption that the termination of asset-backed products business was consummated on that date.

    The consolidated “as reported” column in the unaudited and unreviewed pro forma balance sheet and in the unaudited and unreviewed pro forma statement of comprehensive income reflects the Company’s historical financial statements for the periods presented. Assumptions and estimates underlying the pro forma adjustments column are described in the accompanying notes.

    The unaudited and unreviewed pro forma consolidated financial information does not purport to be indicative of the results of operations or the financial condition which would have actually resulted if the termination of asset-backed products business actually occurred on the dates presented or to project our results of operations or financial position for any future period. This financial information may not be predictive of the future results of operations or financial condition of the Company, as the Company’s future results of operation and financial condition may differ significantly from the pro forma amounts reflected herein due to a variety of factors.

    The unaudited and unreviewed pro forma financial information has been prepared by the Company based upon assumptions deemed appropriate by the Company’s management and are based upon information and assumptions available at the time of filing the Company’s current report on Form 6-K filed with the SEC on June 28, 2024. The following unaudited and unreviewed pro forma financial information should be read in conjunction with: (i) the accompanying notes to the unaudited and unreviewed pro forma consolidated financial information; and (ii) the audited consolidated financial statements of the Company which were included in the Company’s annual report on Form 20-F filed with the SEC on October 18, 2023 and the Company’s unaudited interim report on Form 6-K filed with the SEC on June 28, 2024.



     HYWIN HOLDINGS LTD.
     PRO FORMA CONSOLIDATED BALANCE SHEETS
    As of December 31, 2023
    		 
     (unaudited and unreviewed)
    		 
       Pro forma Adjustments     
     Consolidated Discontinued   Pro forma Pro forma 
     Company as Business   Consolidated Consolidated 
     Reported Disposition   Company Company 
     RMB'000 RMB'000   RMB'000 USD'000 
    ASSETS          
    Current assets          
     Cash and cash equivalents309,495  -    309,495  43,697  
     Restricted cash20,483  -    20,483  2,892  
     Term deposit78,331  -    78,331  11,059  
     Accounts receivable, net152,371  (97,952)   54,419  7,683  
     Due from related parties, net-  (750,809) (1) -  -  
     Deposits, prepayments and other current assets44,434  (24,642)   19,792  2,795  
     Contract assets27,442  -    27,442  3,875  
    Total Current Assets632,556  (873,403)   509,962  72,001  
               
    Non-current assets          
    Property and equipment, net261,518  (261,494)   24  3  
    Long term investment-  -  (2) -  -  
    Intangible assets, net15,398  -    15,398  2,174  
    Deferred tax asset, net401  (401)   -  -  
    Operating lease right-of-use assets3,180  -    3,180  449  
    Held for sale assets129,210  -    129,210  18,243  
    Total Non-current Assets409,707  (261,895)   147,812  20,869  
               
    Total Assets1,042,263  (1,135,298)   657,774  92,870  
               
    LIABILITIES AND SHAREHOLDERS’ EQUITY           
    Current Liabilities          
    Commission payable111,107  (69,716)   41,391  5,844  
    Accounts payable5,295  -    5,295  748  
    Advance from customers36,304  -    36,304  5,126  
    Investors’ deposit6,308  (6,308)   -  -  
    Income tax payable165,120  (151,127)   13,993  1,976  
    Due to related parties38,462  (22,819) (1) 766,452  108,214  
    Other payable and accrued liabilities335,107  (302,449)   32,658  4,610  
    Operating lease liabilities97,356  (51,135)   46,221  6,526  
    Total Current Liabilities795,059  (603,554)   942,314  133,044  
               
    Non-current liabilities          
    Deferred tax liability2,293  -    2,293  324  
    Operating lease liabilities, non-current73,066  (26,967)   46,099  6,509  
    Total Non-current Liabilities75,359  (26,967)   48,392  6,833  
               
    Total Liabilities870,418  (630,521)   990,706  139,877  
               
    Mezzanine equity          
    Redeemable noncontrolling interest30,600  -    30,600  4,320  
    Total Mezzanine equity30,600  -    30,600  4,320  
               
    Shareholders' Equity          
    Ordinary shares36  -  (2) 36  5  
    Additional paid-in capital516,390  (295,533) (2) 220,857  31,183  
    Statutory reserves128,297  (128,254) (2) 43  6  
    Accumulated gain(615,388) (80,990) (2) (696,378) (98,321) 
    Noncontrolling interest98,564  -    98,564  13,916  
    Other comprehensive income13,346  -    13,346  1,884  
               
    Total Shareholders' equity141,245  (504,777)   (363,532) (51,327) 
               
    Total Liabilities, Mezzanine equity and Shareholder's equity1,042,263  (1,135,298)   657,774  92,870  
                   

    See Notes to the Unaudited and Unreviewed Pro Forma Consolidated Financial Statements.


     HYWIN HOLDINGS LTD.
    PRO FORMA CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    		 
     For the Six Months Ended December 31, 2023
    		 
     (unaudited and unreviewed)
    		 
       Pro forma Adjustments    
     Consolidated Discontinued   Pro forma Pro forma 
     Company as Business   Consolidated Consolidated 
     Reported Disposition   Company Company 
     RMB'000 RMB'000   RMB'000 USD'000 
    Net Revenues          
    -Wealth management697,847  (545,571)   152,276  21,270  
    -Assets management18,572  -    18,572  2,594  
    -Health Management67,261  2,885  (3) 70,146  9,798  
    -Other7,547  29,115  (3) 36,662  5,121  
    Total Revenue 791,227  (513,571)   277,656  38,783  
               
    Operating Costs and Expenses          
    -Compensation and benefits464,131  (374,129) (3) 90,002  12,571  
    -Health management costs54,881  -    54,881  7,666  
    -Share-based compensation725  -    725  101  
    -Sales and marketing expenses155,817  (130,026) (3) 25,791  3,602  
    -General and administrative expenses161,288  (64,068) (3) 97,220  13,580  
    -Credit Loss448,982  (436,164)   12,818  1,790  
    -Impairment loss on goodwill257,712  -    257,712  35,997  
    -Impairment loss on long lived assets332,371  (116,704)   215,667  30,124  
    -Impairment loss on long term investment1,000  -    1,000  140  
    Total Operating Costs and Expenses1,876,907  (1,121,091)   755,816  105,571  
               
    Loss from operations(1,085,680) 607,520    (478,160) (66,788) 
               
    Other (expenses)/income          
    -Interest (expense)/income, net(396) (516)   (912) (127) 
    -Other non-operation (expense)/income, net(63) 1,994    1,931  270  
    Total Other (Expenses)/Income(459) 1,478    1,019  143  
               
    Loss before tax(1,086,139) 608,998    (477,141) (66,645) 
    Income tax expense(17,371) (324)   (17,695) (2,471) 
    Net Loss(1,068,768) 609,322    (459,446) (64,174) 
               
    Less: net loss attributable to non-controlling interests(2,367) -    (2,367) (331) 
    Net loss attributable to shareholders(1,066,401) 609,322    (457,079) (63,843) 
               
    Other comprehensive loss          
    -Foreign currency translation loss(3,334) -    (3,334) (466) 
    Comprehensive Loss(1,072,102) 609,322    (462,780) (64,640) 
               
     Less: Comprehensive Loss attributable to non-controlling interests(2,367) -    (2,367) (331) 
    Comprehensive Loss attributable to shareholders(1,069,735) 609,322    (460,413) (64,309) 
                   

    See Notes to the Unaudited and Unreviewed Pro Forma Consolidated Financial Statements.


     HYWIN HOLDINGS LTD.
    PRO FORMA CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    		 
     For the twelve Months Ended June 30, 2023
    		 
     (unaudited and unreviewed)
    		 
       Pro forma Adjustments      
     Consolidated  Discontinued     Pro forma  Pro forma 
     Company as  Business     Consolidated  Consolidated 
     Reported  Disposition     Company  Company 
     RMB'000  RMB'000     RMB'000  USD'000 
    Net Revenues          
    -Wealth management1,949,410  (1,741,684)   207,726  29,919  
    -Assets management32,562  -    32,562  4,690  
    -Health Management86,464  1,377  (3) 87,841  12,652  
    -Other23,321  49,553  (3) 72,874  10,496  
     Total Revenue 2,091,757  (1,690,754)   401,003  57,757  
               
    Operating Costs and Expenses          
    -Compensation and benefits1,156,381  (1,038,326) (3) 118,055  17,004  
    -Health management costs74,476  -    74,476  10,727  
    -Share-based compensation5,207  -    5,207  750  
    -Sales and marketing expenses318,465  (278,515) (3) 39,950  5,754  
    -General and administrative expenses302,221  (149,010) (3) 153,211  22,067  
    -Impairment loss on goodwill35,412  -    35,412  5,100  
    -Impairment loss on long lived assets2,210  -    2,210  318  
    Total Operating Costs and Expenses1,894,372  (1,465,851)   428,521  61,720  
               
    Income/(Loss) from operations197,385  (224,903)   (27,518) (3,963) 
               
    Other (expenses)/income          
    -Interest income, net1,348  (668)   680  98  
    -Other non-operation expense, net(7,083) 612    (6,471) (932) 
    Total Other (Expenses)/Income(5,735) (56)   (5,791) (834) 
               
    Income/(loss) before tax191,650  (224,959)   (33,309) (4,797) 
    Income tax expense71,380  (59,403)   11,977  1,725  
    Net Income/(Loss)120,270  (165,556)   (45,286) (6,522) 
               
    Less: net loss attributable to non-controlling interests(9,611) -    (9,611) (1,384) 
    Net income/(loss) attributable to shareholders129,881  (165,556)   (35,675) (5,138) 
               
    Other comprehensive Income          
    -Foreign currency translation gain8,222  -    8,222  1,184  
    Comprehensive Income/(Loss)128,492  (165,556)   (37,064) (5,338) 
                   
    Less: Comprehensive Loss attributable to non-controlling interests(9,611) -    (9,611) (1,384) 
    Comprehensive Income/(Loss)138,103  (165,556)   (27,453) (3,954) 
                   

    See Notes to the Unaudited and Unreviewed Pro Forma Consolidated Financial Statements.


     HYWIN HOLDINGS LTD.
    PRO FORMA CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
     For the twelve Months Ended June 30, 2022
     (unaudited and unreviewed)
       Pro forma Adjustments       
     Consolidated Discontinued   Pro forma Pro forma
     Company as Business   Consolidated Consolidated
     Reported Disposition   Company Company
     RMB'000 RMB'000   RMB'000 USD'000
    Net Revenues         
    -Wealth management1,899,573  (1,851,107)   48,466  7,506 
    -Assets management19,476  -    19,476  3,016 
    -Health Management422  -  (3) 422  65 
    -Other22,642  34,479  (3) 57,121  8,847 
     Total Revenue 1,942,113  (1,816,628)   125,485  19,434 
              
    Operating Costs and Expenses         
    -Compensation and benefits1,050,077  (1,007,755) (3) 42,322  6,555 
    -Health management costs4,287  -    4,287  664 
    -Share-based compensation7,340  -    7,340  1,137 
    -Sales and marketing expenses311,773  (293,334) (3) 18,439  2,856 
    -General and administrative expenses241,946  (169,177) (3) 72,769  11,270 
    Total Operating Costs and Expenses1,615,423  (1,470,266)   145,157  22,482 
              
    Income/(Loss) from operations326,690  (346,362)   (19,672) (3,048)
              
    Other (expenses)/income         
    -Interest income, net1,498  (870)   628  97 
    -Other non-operation (expense)/income, net(3,741) (6,093)   (9,834) (1,523)
    Total Other (Expenses)/Income(2,243) (6,963)   (9,206) (1,426)
              
    Income/(loss) before tax324,447  (353,325)   (28,878) (4,474)
    Income tax expense88,578  (85,522)   3,056  473 
    Net Income/(Loss)235,869  (267,803)   (31,934) (4,947)
              
    Net income/(loss) attributable to shareholders235,869  (267,803)   (31,934) (4,947)
              
    Other comprehensive Income         
    -Foreign currency translation gain4,177  (866) (3) 3,311  513 
    Comprehensive Income/(Loss)240,046  (268,669)   (28,623) (4,434)
              
    Comprehensive Income attributable to shareholders240,046  (268,669)   (28,623) (4,434)
                  

    See Notes to the Unaudited and Unreviewed Pro Forma Consolidated Financial Statements.


     HYWIN HOLDINGS LTD.
    PRO FORMA CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    		 
     For the twelve Months Ended June 30, 2021
    		 
     (unaudited and unreviewed)
    		 
       Pro forma Adjustments       
     Consolidated  Discontinued    Pro forma  Pro forma 
     Company as  Business    Consolidated  Consolidated 
     Reported  Disposition    Company  Company 
     RMB'000  RMB'000    RMB'000  USD'000 
    Net Revenues         
    -Wealth management1,795,552 (1,742,129)  53,423  8,070  
    -Assets management14,942 -   14,942  2,257  
    -Other23,928 (1,286)  22,642  3,421  
     Total Revenue 1,834,422 (1,743,415)  91,007  13,748  
              
    Operating Costs and Expenses         
    -Compensation and benefits1,003,061 (962,550)  40,511  6,120  
    -Share-based compensation21,947 -   21,947  3,315  
    -Sales and marketing expenses326,879 (311,849)  15,030  2,270  
    -General and administrative expenses200,929 (144,849)  56,080  8,472  
    Total Operating Costs and Expenses1,552,816 (1,419,248)  133,568  20,177  
              
    Income/(Loss) from operations281,606 (324,167)  (42,561) (6,429) 
              
    Other Income/(Expenses)         
    -Interest income, net1,537 (1,484)  53  8  
    -Other non-operation income/(expense), net12,608 (13,207)  (599) (90) 
    Total Other Income/(Expenses)14,145 (14,691)  (546) (82) 
              
    Income/(loss) before tax295,751 (338,858)  (43,107) (6,511) 
    Income tax expense88,094 (88,301)  (207) 31  
    Net Income/(Loss)207,657 (250,557)  (42,900) (6,480) 
              
    Net income/(loss) attributable to shareholders207,657 (250,557)  (42,900) (6,480) 
     
         		         
    Other comprehensive Income         
    -Foreign currency translation gain10,542 -   10,542  1,592  
    Comprehensive Income/(Loss)218,199 (250,557)  (32,358) (4,888) 
              
    Comprehensive Income/(Loss) attributable to shareholders218,199 (250,557)  (32,358) (4,888) 
              

    See Notes to the Unaudited and Unreviewed Pro Forma Consolidated Financial Statements.

    NOTES TO UNAUDITED and UNREVIEWED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

    The pro forma adjustments are based on preliminary estimates and assumptions by management that may be subject to change. The following adjustments have been reflected in the unaudited and unreviewed pro forma consolidated financial information:

    (1) Adjustment to reflect the elimination of assets and liabilities attributable to the Discontinued business.

    (2) Adjustment to reflect the long-term investment in subsidiaries.

    (3) Adjustment to reflect the elimination of internal consulting and technology revenue related to the Discontinued business.


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