Q3 2023 Hywin Holdings Ltd Earnings Call
Good morning and good evening ladies and gentlemen.
Thank you for standing by and welcome to High Wind Holdings second half and fiscal year 2023 earnings conference call. At this time, all participants are in a listen-only mode.
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. On the call today are the company's Director and CEO , Madame Wang Dian and CFO , Mr. Lawrence Locke. Madame Wang will review the company's performance for the second half and fiscal year 2023. Mr. Locke will translate for Madame Wang.
Then, Mr. Locke 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 2nd half and fiscal year 2023 on the company's IR website at ir.highlandwealth.com.
I will now turn the call over to Director and CEO of Highland Holdings, Madame Wang Dian. Madame Wang, please proceed. Madame Wang, please proceed.
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Hello, everyone, and welcome to the Hyland 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 Locke, our Chief Financial Officer, to provide greater details on the company's financial performance. Thank you. Thank you. Thank you.
In the past year, the world and China have gradually recovered from the epidemic era. Although the economy is gradually warming, the market is still looking for direction in the wave of inflation. The market sentiment also shows a post-pandemic attitude. For this, Haiyin has maintained a strategic position. In response to the wave, it has also taken the initiative to continuously optimize the business center, and actively grasp the trend to promote the accelerated development of health management, asset management and overseas business.
2023 is the year of the sea silver wealth plus health double-wheel drive strategy. The company's net income has reached 20.9 billion yuan, an increase of 7.7% at the same time. Among them, the company's traditional advantageous business has played a role in the stock market, and has laid the foundation for the development of new business and the optimization of income structure.
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 in flux, 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.
In fiscal year 2023, the inaugural year of our wealth plus health dual platform strategy, Highwind achieved remarkable net revenues of 2.09 billion renminbi, 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.
In terms of wealth and business, we have adapted to the changes in policies and the market. We have also increased the proportion of asset-based products, insurance-based products, and full-fledged commission-based products to meet the diverse and stable configuration needs of high-economic customers in the post-pandemic era.
These high-risk, high-profit, and cross-period products have been recognized by our customers.
At the same time, health business is the company's second growth curve, and it has shown a fast-growing trend in its first year. It has contributed nearly 90 million yuan in revenue, which is more than 200 times the growth of the same year. It has also become an important catcher in our customer life cycle, and has further improved customers' trust and reliance on the Haiyin platform.
Since the launch of Haiying, we have been actively promoting the diversification of business, increasing the global asset configuration of customers, and advancing the health industry. These strategic measures have contributed to the stability of Haiying's growth and performance in the cycle of fluctuations.
Next, let's take a look at the performance of each block.
These products, characterized by their strong resilience during a time of volatilities and uncertainties, offer our clients stable returns and the ability to withstand market cycles. 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 90 million RMB, which is more than 20 times 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.
Since Highwind'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. Next, let's take a look at the performance of each segment.
In the financial management sector, in the year of 2023, due to the continuous expansion of the Sino-U.S. market gap and the fluctuation of large-scale assets, the assets and investments of the domestic financial market are under tremendous pressure. In response to this situation, we also took the initiative to adjust the structure of the products. Based on the market trend and customer demand, and on the basis of the abundance of product prices, we have made appropriate adjustments to the category and proportion of each product.
As a whole, the new asset configuration scale of the financial management block is 726.3 billion yuan, which is 9% lower than before. Among them, the configuration of asset-based products is 665.9 billion yuan, which is 5.8% lower than before, and also achieves scale optimization.
At the same time, the financial planning business has made new breakthroughs. The target volume of overseas insurance has increased from 262.2% to 4.6 billion yuan.
In the world 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.
Overall, the transaction value in the wealth management product in the wealth management segment totaled 72.6 billion RMB, a 9% year-on-year decline, amongst which, asset-backed products accounted for 66.6 billion RMB, representing a 5.8% year-on-year decrease as we were more selective with our products in this period.
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 460 million RMB.
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In the second quarter of this year, based on the new characteristics of global capital flow, we have increased the recruitment efforts of professional teams for the Middle East and Indian markets and further expanded our overseas customers.
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In the asset management segment, total asset under management, AUM, increased by 90.8% year on year, reaching 8.5 billion RMB. Notably, 82% of the AUM was contributed by clients acquired outside of Mainland China. The global nature of all clients face 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. Highwind 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 $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.
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The high standards set by Highwind's EAM business can also act as a catalyst and in turn help us coach the advisory skills and client surfacing skills of all of Highwind's relationship managers.
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In addition, as a breakthrough in the technology-driven asset management business, Hainan Silver Co. Co., Ltd. has also co-founded the Swiss financial technology company Liangda and the integrated financial technology platform Yucheng Tejin. In 2023, they jointly launched the Hainan Silver Global Trend Series theme lottery, allowing investors to participate in the six major investment channels globally in a way of capital security.
The development and landing of this series of products has once again demonstrated Haiyin's strong ability to invest, product design, and risk management. It has also played a certain role in boosting the profitability, anti-vibration, and customer tenacity of asset management business.
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As a fully owned subsidiary of Hiwin Holdings, Hiwin International is recognized by the Hong Kong SAR government as one of the top five family offices and holds the vice chair of the Hong Kong Limited Partnership Fund Association.
In addition, as an example of high-risk foray into technology-driven asset management, in 2023, we successfully launched the global mega-trend series of principal protected nodes in partnership with Leontak AG, a switch fintech company, and Auta Techsyn, a hybrid software company.
As an example of high-risk foray into technology-driven asset management, in 2023, we successfully launched the global mega-trend series of principal protected nodes in partnership with Leontek AG, a Swiss fintech company, and Auta Techsyn, a hybrid fintech platform in Hong Kong.
This product series can help investors participate in six distinct and sustainable investment themes while enjoying the peace of mind of principal protection. This innovative and proprietary product series once again demonstrated high risk expertise in product R&D and risk management and helped us enhance the profitability, counter cyclicality and stickiness of our client AUM. The success of Hyland's Asset Management business.
in an international market that is dominated by global incumbents. It's a 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.
Turn it over to today for now and we can now.
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It is worth mentioning that 36% of our super high-end customers are overseas.
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The next session will be held in the morning. The presentation will be held in 10 minutes. The presentation will be held in 10 minutes. The next session will be held in 10 minutes.
As of June 30, 2023, our total client base reached 153,000, reflecting a 8.2% year-on-year increase. Of those, nearly 47,000 were active of the COVID-19 pandemic.
June 30, 2023, our total client base reached 153,000, reflecting a 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 place in Highwind, their strong trust in our relationship managers, and their strong loyalty to our investment platform, even in the face of market challenges. Within our Ultra High Net Worth clients,
investment rate amongst our clients stood at 82%. These statistics underscore the trust that high net worth individuals place in Highwind. Their strong trust in our relationship managers and their strong loyalty to our investment platform, even in the face of market challenges. Within our ultra high net worth clients here,
36% are domiciled outside of mainland China, which demonstrates high-w
Meanwhile, we remain committed to attracting top tier talents.
actively growing our relationship managers team and enhancing the footprint of our work servicing centers across key regions in China. As of June 30th, 2023, our total number of relationship managers reached...
1749, 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 world 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.
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The Chinese government has been very interested in the development of the Chinese government. We have been very interested in the development of the Chinese government.
According to research, among the non-financial needs of high-quality people, medical and health services occupy a very high proportion, especially with the aging of the rich class in China, high-end health management has become a cornerstone. In this track, the requirements for professionalism, privacy and experience are very high. At present, the Chinese market is facing a double challenge, a shortage of supply-end resources and a shortage of scale-up service providers. Since Hanyin Health was established, we have effectively integrated the advantages of the five professional regulatory agencies, and introduced advanced health management technology, equipment and service models in the United States, Germany and Japan.
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In fiscal year 2023, Highwind Health recorded net revenues of 87.8 million RMB, amongst which the health screening segment accounted for 23.4 million RMB with an average revenue per visit of 2,904 RMB, while the health management segment accounted for 64.4 million RMB with an average revenue per client of 22,613 RMB.
Our premium pricing in health management reflects our premium positioning in providing high-end medical screening and high-end medical management, health management services for high network individuals.
Industry research data shows that medical and health services is one of the largest categories of non-financial services demanded by high net worth individuals. As the affluent population in China continues to grow,
And H, 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-notched client experience.
Since the launch of Highland Health, we have been integrating our five 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 two strategic levers in one ecosystem, in order for us to grow and further monetize on our high-net-worth client base. We have also focused on our customer digital health files as part of our Highland Health digital strategy. We have built a digital health cloud platform around our digital health files, and we have quickly accumulated 110,000 health data assets for all of our organizations, businesses, customers, products, supply chains, and other information-centered management and sharing, and we have also achieved a unified plan for health business nationwide, a unified management system development. At the same time, we have also used digital technology such as VR scanning, AI health assessment, etc. to achieve seamless integration of online and offline services.
We have also improved the customer experience and created a digital service experience that penetrates the entire customer life cycle. At present, we are accelerating the national layout of health business. In addition to the four major businesses that are currently operating in Beijing, Shanghai, Chengdu and Chongqing, we will enter more first-tier cities. We will continue to participate in the health field and hot spots through various ways, including self-building, acquisition and joint venture, and further improve the advantages and disadvantages of marine health.
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 all 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.
Going forward, we are fully dedicated to further expanding the growth of our health management business.
Leveraging our five 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.
The investment in digital technology is reflected not only in the health management sector, but also in the financial management sector. We have also built a service platform for HIPA smart asset configuration systems and X-LINK big data for consultation, risk management and customer experience on asset configuration, as well as a large-scale asset configuration plan exclusively for investors, to predict the increase in wealth retention and risk of investment. To date, the system has generated more than 1.5 million service opportunities, and has also generated more than 1,000 asset configuration proposals to help financiers meet and understand customer needs in advance.
In addition, our fund-based trading platform, Jihuitong, has improved the efficiency and service quality of transactions for institutional customers by customizing services for institutional customers. At present, the online transaction rate of institutional customers has reached 99%. The opening time has been increased from two days to 30 minutes, and the transaction time has been increased from one day to three minutes. This can be said to have greatly improved the efficiency of institutional customers' investment.
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Hywind's investment in digital technology is embedded in not only the health management segment but also our work management business.
We take a client-centric approach and created HIPAA, Intelligent Asset Allocation System, and the X-Link Big Data Service Platform. These platforms enhance our asset allocation consultation, risk management, and client processes.
Moreover, our dedicated fund trading platform, InvestPath, 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.
Transaction execution now takes three minutes instead of previously one day, thereby greatly enhancing our efficiency for institutional clients. In addition to leveraging technology to empower products and services, our digital technologies today also underlie 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.
To date, we have obtained over 30 software copyrights, and our subsidiary, Hi-Wen Technologies, 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.
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Hywind'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, Hi-Wen Holdings was named the Best Wealth Manager of Greater China 2023 by Wealth Briefing Asia. This is the third consecutive year that Hi-Wen has been named for this award. On August 12th this year, Hi-Wen 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.
On June 8th this year, at the 2023 ESG practice, 50 responsible listed companies award of the economic observer, High Wind Holdings was recognized for our ESG contributions. High Wind is recognized as one of the few industry leaders who pioneered and championed ESG values in our industry. On May 19th, High Wind Wealth won number three amongst the top five 2022 most competitive wealth management institutions by China Venture.
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If you want toperson with the right information, please check it out from our website.
In closing, as we concluded fiscal year 2023, there was a year of change and transformation for Highwind.
We make proactive adjustments to our product mix and our business strategy in response to market changes.
We achieved steady revenue growth.
And we are proud of our clients' thickness as our clients stayed with us during the market downturns, as demonstrated in our client repeat investment rate at 82% this year.
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 Hi-Wen's future, just as we are excited with the enormous potential of China's wealth management industry going forward.
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 remedy terms while comparisons are made on a year-over-year basis.
I will now present our financial results for the second half of fiscal year 2023 and the June 30th.
In the six months ended June 30th, 2023, our total net revenues were 1.1 billion, down 0.5%. Total net revenues for the full fiscal year was 2.1 billion, up 7.7%. Looking at our revenue breakdown, revenue for our wealth management segment was 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 $302.1 million, mainly attributed to surging insurance demand post-COVID. We adjusted our product offering strategy in the face of market volatility 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 1.6 billion while revenue from public market investment products increased by 10.4%.
by 45% to 20.5 million.
Revenue from our asset management segment for the full fiscal year was 32.6 million, up 67%.
Asset management continues to contribute high growth to our revenues, mainly due to increases in client asset under management, AUM. We maintain our leadership in EAM in Hong Kong, where client AUM increased by 72% to 1.0 billion USD.
Highland Health segment revenue and net losses for the fiscal year was $87.8 million and minus $112.8 million respectively. Highland 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 highland health going forward in order to expand our highland health footprint.
while we also focus on further tightening our cost control to improve net losses at individual high-end health clinics.
On the cause and expense side, total operating cost and expenses for the full fiscal year was $1.9 billion, up 17%. Compensation and benefits increased 10% to $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. For more information, visit www.fema.gov
Health related cost was $74.5 million. Sales and marketing expenses increased only slightly by 2% to $318 million.
General and administrative expenses increased 24.9% to $302.2 million, primarily due to increased personnel and infrastructure expenses in technology, as well as new expenses related to the health management segment.
Our income from operations for the full year was 197.4 million, down 39%. Reported net income for the full fiscal year was 103 million, down 49%. Our earnings per ADS for the full fiscal year was 4.64 on a per ADS, on a basic basis, and 4.48 per ADS on a diluted basis. As of June 30th, 2023, we had 945.9 million in cash and cash equivalents and restricted cash on hand. Our China
We believe our strong cash flow generation together with our strong balance sheets has provided us with significant opportunities for further growth and further value creation going forward. Thank you everyone. This concludes our prepared remarks for today. Operator, we are now ready to take questions.
Thank you very much. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced.
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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.
Pardon me. Today's first question comes from Teng Ma with Harmaland's Capital. Please go ahead.
Hi, hello, can you hear me?
Thank you for taking my question. I have one question.
is what stages having the current diversification strategy in?
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We hope to see you in the next session. We hope to see you in the next session. Thank you for your attention.
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Thank you, Martin, for your question. This is Lawrence here. I'll translate for Man Wong and add some perspectives from my own as well. So your question on diversification, I think our view on diversification, Man Wong mentioned at least three 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 these are asset NAV-based products, these are asset classes that tend to be pro-cyclical, not counter-cyclical. So we have to look at the market condition in deciding our strategies around specific products. On the private, secondary 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. 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 for promising, large promising opportunities, especially in high tech sectors that are in line with national directions.
For asset backed traditional wealth management products, our strategy is to continue to stay flexible and continue to be optimistic, but this is where risk management and credit quality is very key. So we will also continue to introduce more fixed income plus or fixed income like wealth management products that will further diversify our asset backed product offerings as well. 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. The second dimension that Madam Wang was explaining was our geographical diversification.
Taiwan 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 has historically has operated fairly independently and follows international best practices. We are 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. The third dimension that Man Wong pointed to was our business. This is Canvas.
be 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 has historically has operated fairly independently and follows international best practices. We are therefore unique in the sense that we have very strong offerings, both domestically as well as in Hong Kong, and will continue to do so in serving our clients onshore as well as offshore wealth management needs. The third dimension that Man Wong pointed to was our business segment.
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 trillion dollar industry opportunity for us, a once in a decade opportunity in our view. And we are 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 above.
Thank you. Next question please. Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. The next question is from Mr. Zhou, investor. Please go ahead.
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Thank you, Mr. Zhou. I'll translate for Man Wong. So Man Wong 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 phase 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. 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 home buyer benefits, urban village upgrade in 21 cities, Ecera, all these policies are aimed at improving the...
demand and supply balance in the physical sector. So for us, Hiwin, real estate backed world management products is only one of the many asset...
as a back product that we distribute. The specific products or asset classes that we introduce to our product pipeline
on a week to week, month to month basis, is a very dynamic process, right? That we, 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? So we don't have this kind of risk exposure that some players in the market are having right now, which tend, generally tend to be exposed when there is a market downturn like today. So it is important, and Man Wong, we iterated that we stay very focused in our world management business, and we're very clear that we'll continue to keep our business model and revenue model very simple and focused.
Thank you. Next question, please. The next question comes from Mr. Wang with Dahou Investment. Please go ahead. The next question comes from Mr. Wang with Dahou Investment. Please go ahead.
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Thank you, Mr. Wong. I'll translate for Ma'am Wong.
some market shifts as well as investor sentiment and appetite changed in the past year as you pointed out. But for us, HiWin, we were not impacted to a large extent. We believe that's because of several reasons. First, HiWin has been very proactive in our client dialogue, our client expectation management, and giving our clients professional advice and insights. 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.
The second is, Hywen has been very collective 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. As you mentioned about the Chinese economy, we actually stay optimistic, perhaps cautiously optimistic as well on China. We know that there are recently numerous policy support measures that have been announced this year so far. It 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. We also know that under NDRC, right, Fagai Wei, National Development and Reform Commission, which is under the State Council, announced that it is setting up a, it set up a new China private economy bureau, meaning Jinji Faidanzhu. So 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 private clients are Chinese private sector entrepreneurs themselves and I think these actions from the top will help restore confidence in the economy.
and private sector entrepreneurism. A lot of hiring clients are Chinese private sector entrepreneurs themselves and I think these actions from the top will help restore confidence in the economy. Thank you.
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and the other is that we have a lot of financial issues that are not covered by the government. So, we are looking at the financial issues that are not covered by the government. Thank you. Okay, thank you, Mr. Wang. I will translate for Madam Wang. So, you are 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 Taiwan Health is...
the Children The future country order so we can come here When they use the whole mountain you wait out it here. She did Hushable me the main okay. Thank you. So I'll translate for man Wong So you're right and point out that we do have higher average prices in respect of our Medical exam services the medical examination services that we provide at high with health is it's 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. Number one is the equipment that we use. We insist on using top-notch equipment that we acquire 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. Ma'am Wong also pointed to the environment, which we believe is also very important to the client experience. It's important to emphasize that the highland health approach is to really treat our clients holistically. It is not just a one-time consultation and be done, right? It's really a personalized and customized approach, servicing approach that we take. And lastly, Ma'am Wong'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. Any more questions? As there are no further questions at this time, this concludes our conference call. You may now disconnect your line. Thank you for your participation. Thank you. Thank you.