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spk04: Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Highwind Holdings Limited's fourth quarter and full year 2021 earnings conference call. At this time, all participants are in the listen-only mode. We will be hosting a question and answer session after management's prepared remarks. I will now turn the call over to the first speaker today, Ms. Luffy Nguyen, Senior Director of Investor Relations in Highwind Holdings. Please go ahead, madam.
spk01: Thank you all for joining today's call for High Wings on Audited Financial Results for the fourth quarter and the full fiscal year 2021. Before I start, I refer you to the safe harbor statement in the company's earnings release, which also applies to this conference call today, as our management will make forward-looking statements. On the call with me today are our director and CEO, Madam Wang Din, and our CFO, Mr. Lawrence Locke. Madam Wang will review the company's overall performance for fiscal year 2021. Then Mr. Lawrence Locke will discuss our financial results of both quarter and full fiscal year 2021 in detail. Mr. Locke will translate for Madam Wang. You may refer to our financial results on the company's IR website. I will now turn the call over to Madam Wang.
spk09: Hello, everyone. Hello, everyone. Thank you for taking the time to join us today on our earnings call for the fourth quarter and full year fiscal 2021. From the perspective of the Chinese financial market, according to the prediction of the CIC, by the end of 2021, China's total amount of investment assets will exceed RMB2.4 billion. We said that the global epidemic has also further boosted the need for wealth management by the rich. In the face of uncertainty at the macro level and the market level, In this past year,
spk03: China's recovery from the COVID-19 pandemic continued, fueling a strong economic rebound. According to forecasts by the China Insights Consultancy, the total investable assets of China's households are on track to exceed 240 trillion RMB by the end of 2021. Elevated uncertainties in the macro outlook and market trends have driven high-net-worth clients' demand for professional wealth management services and global asset allocation advisory. Meanwhile, clients are extending their focus beyond just risks and returns in their investment process. As clients become more sophisticated and pursue diverse goals over longer horizons, the bar has been raised for wealth managers like Haiwen.
spk09: 2021 is the 16th year of the establishment of Haiyin Finance. It is also the first year of our success in Nasdaq. Our operations and performance in 2021 have been very good. Haiyin's annual net income of 18.3 billion RMB has increased by 42.8%. In terms of cost control, this year, Our total operating cost is 15.5 billion RMB, which has increased by 37.9%, which is lower than the increase in operating income at the same time. Due to the strong income growth and effective cost control, our profit level has also significantly improved. The net profit of 2021 is 95.6% higher than that of 2020, reaching 208 billion RMB. The high-quality growth of revenue and profits also comes from our long-term commitment to focus on customers, focus on products, and focus on talent. We have also launched and implemented eight strategies in advance, such as customer economy, product selection, network layout, talent growth, technology performance, investment, promotion, brand promotion, and overseas promotion. These eight strategies have also been fully verified in 2021. Overall, we are satisfied with the excellent results we have achieved in this stage. Of course, we are also full of confidence in the sustainable development of the future.
spk03: 2021 is the 16th year in Hiwin's corporate journey and also our first year as a public company listed on NASDAQ. We achieved excellent operating results and financial performance in fiscal 2021 as our net revenues increased by 42.8% from the prior fiscal year to 1.83 billion RMB. Our discipline and cost control also yielded solid results. Operating costs increased by 37.9% from the prior fiscal year to 1.55 billion RMB, growing at a slower pace than our net revenues growth. On the back of our strong revenue growth and effective cost control, our net income in fiscal 2021 increased by 95.6% from the prior fiscal year to 208 million RMB. Our strong net revenues and net income once again reflected the competitive strength of our client proposition, our product proposition, and our talent proposition. Our excellent financial performance this year is also a ringing endorsement of our eight-dimensional business strategy, which aims to deepen client relationships, diversify product offerings, optimize distribution footprint, unlock value from technology, upgrade research and advisory, enhance brand value, and scale up our offshore franchise. Our fiscal 2021 results have further reinforced our strategy conviction and accelerated our pursuit of long-term sustainable growth. 首先我們從客戶維度來分析,截至2021年6月30日,我們的客戶總數已超過12.7萬人,較2020財年同比增加12.5%。
spk09: The number of active customers in 2021 has also exceeded 38,000, with a 4.5% increase. We even know that the stable growth of performance comes first from the long-term trust of customers. We are also very curious to see that the return rate of this period of customers reached 76.7%, which has been at a higher level in the industry for many years. This also shows that in the process of our persistence in upgrading our services and growing our demand, we have improved our customer-to-customer capability, communication efficiency, and customer-to-customer relationship. Thus, we have also promoted the active level of our customer groups and contributed to their performance. At the same time, investment education is also an important channel for us to establish a deep connection with high-end customers. In 2021, we held 1,519 events nationwide, In terms of our client franchise,
spk03: Our total number of clients increased by 12.5% from the prior fiscal year, reaching 127,000 as of June 30th. Our number of active clients in fiscal 2021 increased 4.5% from the prior fiscal year, reaching 38,000. We believe client trust is the ultimate engine of steady business growth. In fiscal 2021, the repeat investment rate of our clients was 76.7%. This is a key metric for measuring client stickiness, and we have shown and continued our industry leadership in this regard over recent years. This consistently strong client activities level and revenue production were made possible by our rigorous mapping of client needs, differentiated offerings, high quality client conversations, and continuous client servicing. Meanwhile, Investor education is also an important channel for maintaining and enhancing our clients' trust. During fiscal 2021, we held 1,519 investment seminars across China, attended by nearly 40,000 clients. In addition, we use technology to maintain high-frequency digital engagement with our clients, for example, utilizing webinars, our own app, and other various digital channels.
spk09: In terms of our product structure, from wealth management to asset management, from RMB investment to global asset configuration, from financial products to comprehensive financial services, we are continuously expanding the value we provide to customers. In 2021, the amount of new added customer asset configuration in the wealth segment reached 7.88 billion RMB, which is 15% of the total growth. Among them, the new added configuration amount of private property products has increased by 38.4% to 7.3 billion RMB. Among them, the asset configuration amount of private property products has increased by 46 times to 17 billion RMB. In the future, private property products will also become one of the important starting points for us to optimize the product structure. These results show that the price of our open-source products is also continuing to expand in a multidimensional way, and our product selection capability, investment capability, and seal capability have also been further improved. In 2021, our asset management business also achieved rapid development. The size of asset management increased by 69.9% to more than 2 billion RMB. With Hainan Real Estate Management as a platform for Hong Kong limited companies, we have also provided a customized asset management service based on the EM model for super high-end customers and institutional customers in Asia. At the same time, we have also issued and managed many Hainan brand opening funds, providing high-end customers with global private equity, Asian bonds, and Chinese stocks, and other diversified investment strategies.
spk03: We also continue to enhance our product structure from wealth management to asset management, from renminbi assets to global asset allocation, and from product solutions to holistic advisory. We are continuously expanding our business scope to create value for our clients. In fiscal 2021, Transaction value for our wealth management segment increased by 15% from the prior fiscal year to 78.8 billion RMB, mainly driven by growth in our privately-raised product subcategory, which increased 38.4% from the prior fiscal year to reach 73 billion RMB. In particular, the transaction value of privately-raised securities products increased 46 times year-on-year to 1.7 billion RMB. Going forward, we believe privately-raised securities products will become one of the key drivers for our product mix diversification. Our future growth will be supported by our expanding spectrum of product offerings, but will also be safeguarded by our robust product onboarding and risk management processes, as well as our asset allocation expertise. On the asset management side, in fiscal 2021, our asset management business scaled up rapidly with AUM increasing by 69.9% from the prior fiscal year to 2.0 billion RMB. Leveraging Highwind Asset Management Hong Kong Limited as our asset management hub in the offshore space, we provided highly tailored portfolio management solutions to ultra-high-net-worth clients and institutional clients in Asia using the EAM external asset management business model. Meanwhile, we launched a series of high-end branded payment funds to offer a number of strategies to high-net-worth clients, including global private equity, Asian fixed income, Greater China equities, and more.
spk09: As of the end of 2021, the number of cities we covered has increased from 84 to 87. The number of wealth centers has also increased from 167 to 177. The expansion of the network point has increased the strength of customer management services. On the other hand, it has also improved our influence in the local market. In the future, we will continue to advance the overall strategic layout of deepening the Chinese market. During fiscal 2021, our distribution network continued to expand with our footprint increasing from 84 cities to 87 cities.
spk03: while our number of wealth service centers increased from 167 to 177. As a result, our client servicing capacity and competitive modes in the local markets continue to grow. Our footprint strategy has been highly effective. With our headquarters in Shanghai and two regional hubs in the Bohai Economic Rim and the Greater Bay Area, We have penetrated into 18 strategic cities in China, and we are covering most of China's 50 wealthiest cities.
spk09: The long-term development of companies and talents is the fundamental driving force. By the end of 2021, the total number of financial experts in Hainan is 1,584, with a slight drop in the same ratio. However, financial experts' labor capacity has reached 52.38 million yuan, with a 16.1% rise in the same ratio. At the same time, our financial management team is highly stable, with a margin rate of less than 6% per year. In 2021, we will continue to optimize the training system and set up an incentive system for differential financial management levels. At the same time, we will lead financial advisors from the front end of the product recommendation to asset configuration suggestions and comprehensive service transformation. In fiscal 2021, we continued to invest in our people.
spk03: As of June 30th, our number of relationship managers was 1,584, a slight decrease from the prior fiscal year. However, the transaction value of both management products per RM increased by 16.1% to 52.4 million RMB. The attrition rates within the elite segments of our relationship managers was less than 6%. which show our staff loyalty and stability. During fiscal 2021, we also continued to strengthen our training programs and implemented differentiated incentive schemes across various tiers of relationship managers. Meanwhile, our continuous upgrade in our research and technology platforms also further empowered our frontline staff, thereby steering the transformation of our relationship managers from a product-based proposition to holistic, trusted advisory when they engage with our clients. This year, we also worked with Willis Towers Watson to implement a more nimble organizational structure to enhance our platform synergies and efficiency. Through increased internal connectivity and collaborations, we aim for optimal resource allocation and position ourselves to be more responsive to any shifts in the operating environment.
spk09: In terms of the use of technology, the digitalization of Hainan in 2021 is very promising. We are actively promoting the 3-2-1 digital system. Specifically, we want to realize the digitalization and the digitalization of the three terminals. It is built on the dual-core drive model of the business terminal, the digital terminal, and the two major terminals, and relies on a technology base to provide strong technology guarantee capabilities. Since the launch of 3.2.1's technology strategy, the activity of the number of customers, the use rate of electronic contracts, and the richness of customer data labels have all been greatly improved. In the fourth quarter of 2021, our X-Link smart engine is also on the line. It uses data and AI to help financiers to dig up customer needs, check customer clues, maintain customer life cycle, data observation and loss warning, etc. So overall, it has also increased the customer's interest rate and customer wallet share.
spk03: Our digital transformation accelerated in fiscal 2021. We implemented our 3-2-1 technology infrastructure. And 3-2-1 stands for three digital portals for our clients, our relationship managers, and our products. Two middle office engines, meaning our commercial middle office and our data as a middle office. and one technology infrastructure platform, which underlies all of our major functions. Since the launch of our 321 technology infrastructure, we observed significant improvements in several key internal metrics, such as monthly active users, MAU, electronic contract signing rates, our digital mapping of clients, and more. During this quarter, we also launched our X-Link Big Data Engine. The engine uses big data to help our relationship managers on multiple fronts, including data analytics of clients' online behaviors, sales prediction, client servicing, lifecycle management, early warnings on client attrition, and more. These tools enable relationship managers to fully maximize client profitability and our share of the client's wallets.
spk09: In addition, we continue to improve our investment capability and expand our professional advantage in the sea. We have recruited a top-tier investment analyst team in China to provide professional output in the fields of macroeconomic economy, investment strategy, asset configuration, and other fields, and integrate the use of smart investment to fully integrate investment services into the process of business. At the same time, we have also established strategic cooperation with Shanghai Jiao Da High School of Finance.
spk03: During this fiscal year, we also continue to invest in our research capabilities. We recruited seasoned analysts from leading investment banks to lead our research efforts on macroeconomics, asset classes, and portfolio strategies. These intellectual insights are incorporated into our sales and advisory processes through robo-advisors and other Sales and Marketing Interfaces. We also entered into a strategic collaboration with the Shanghai Advanced Institute of Finance, which is a part of the prominent Shanghai Jiao Tong University. This partnership will convert latest academic insights into value creation for our clients.
spk09: In 2021, we gained a high level of recognition in the industry by working tirelessly in various fields. As of the end of 2021, Haiying and our executives have achieved more than 80 comprehensive ideas from all over the country. This is not only a confirmation of our commitment to doing the right thing in the past 16 years, but also an incentive for us to further develop our innovation, optimize and upgrade. After 16 years of development, Hainin is starting a new journey. We will continue to maintain and develop the advantages of Hainin, insist on the concept of client-oriented, talent-oriented, and technology-oriented development, actively develop new business layout, and open up new business areas. We are a open and win-win concept, and will continue to absorb the top talent alliance in the world, and promote the company's long-term development together with the original core. In recent years, Mr. Le Wei, a senior investor, has also joined Haiyin as the chief financial officer. This will deepen our exchanges with the capital market and global investors, and will also contribute to Haiyin's diversified growth path. In the next part, we will invite Le Wei, the chief financial officer, to share with you the financial information of this period.
spk03: Our efforts and achievements were highly regarded in the industry. In fiscal 2021, Hiwin and our senior management won more than 80 major awards from numerous industry bodies and publications. These awards are tributes to our successful growth strategy and encourage us to take efforts and innovations to the next level. Building on our successes over the past 16 years, Tywin is continuously reinventing itself to take on new growth opportunities. Our focus on serving clients, nurturing talent, and unlocking value from technology will continue to be our guiding light as we venture into new business domains and expand our franchise. We also continue to enrich our intellectual capital and attract top tier talents from leading international firms, including recently Mr. Lawrence Locke, who joined Hywin as our chief financial officer. And Mr. Locke was previously a senior investment banker. Mr. Locke will lead our conversations with the capital markets and global investors, as well as champion Hywin's various growth strategies through multiple avenues. On that note, I would like to pass things over to Mr. Locke to share details on our operating and financial results. Thank you, Madam Wang, and thank you all for joining us today. Before we begin our detailed financial discussion, please note that unless otherwise stated, all financial numbers presented are in renminbi terms, while comparisons are made year on year. During the fourth quarter, we achieved strong growth. Our total net revenue in the fourth quarter was $502 million, up 43%. Total net revenue for the full fiscal year 2021 was $1.83 billion, up 42.8%. Looking at our revenue breakdown, revenue from our wealth management segment was $1.80 billion for the full fiscal year, up 40.9%. This strong growth in our wealth management services was primarily due to continued strength in client demand for our privately raised products. Revenue from our asset management segments for the full fiscal year was $14.9 million, up 223.4%. This particularly rapid growth in our asset management business was driven by strong client interest in offshore fund products and discretionary mandates. Revenue from our other services segments for the full fiscal year was $23.9 million, up 311.9%. Our other services segment is primarily comprised of technology consulting. On the cost and expenses side, our total operating cost and expenses for the fourth quarter was $423 million, up 39.3%. For the full fiscal year, total operating costs and expenses were $1.55 billion, up 37.9%. In terms of cost breakdowns, compensation and benefits for the full fiscal year increased 41.5%, largely in line with our revenue growth. Our sales and marketing expenses for the full fiscal year increased 32.8%, and our general and administrative expenses increased 17.2%, demonstrating that we continue to have success in optimizing our overhead expenses as a percentage of our revenue. As Madam Wong said, we will continue to invest in our platform, in our people, and in our technology. But at the same time, we will also be focused on our cost and expenses discipline. Our income from operations in the fourth quarter was $78.8 million, up 67.4%. For the full fiscal year, our income from operations was $281.6 million, up 77.1%. Our reported net income for the full fiscal year was $207.7 million, up 95.6%. Our earnings per ADS for the full year was $8.05, was 8.05 RMB per ADS on a basic basis, and 7.76 per ADS on a diluted basis. As you can see, we are very pleased with our significant earnings growth. Our balance sheet is also strong. As of June 30, 2021, we had $705.3 million in cash and cash equivalents and restricted cash on hand. Our business model is capitalized, and we continue to maintain very healthy liquidity ratios. Looking forward, we remain optimistic about our growth This year, we are investing into several key areas, including our product diversification, our technology R&D, our physical network of World Service Centers, our young talent, our technology and our research capabilities, and so on. As we focus on strategy expansion and productivity gains, we believe we shall continue to deliver attractive returns on our investments. Thank you, everyone. This concludes our prepared remarks for today. And operator, we're now ready to take questions.
spk04: As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, push the button. When asking the question, please state your question in Chinese first, then immediately repeat your question in English for the convenience of everyone in the call. Your first question comes from the line of Wayne Shuai of ICBC International. Please ask your question. For the line of Wayne Shuai, your line is open. Please ask your question.
spk08: Hi, everyone. I'm Wayne Shuai. I represent the supply of international asset management. 我這邊有幾個問題,這第一個是在近期海鷹有計畫推出什麼樣的產品種類嗎? Hi, this is Wayne, so I call you from ICBCI Asset Management. Does high-end have plan to launch new product categories in near future? Thanks. 好,你好啊。
spk09: As a financial management agency, we continue to optimize the product structure according to the different needs of our customers. This has always been one of our core strategies, and it is also the direction we are working towards. Because we can use diversified products and service expansion to play a professional role in asset configuration and program customization. Regarding products, in the future, we will focus more on products in the field of digital securities. and the size of PE, VC products, and public funds will be our long-term goal. At the same time, as an overseas product, we will use overseas businesses such as EAM, family offices, and the establishment of a management platform to provide our customers with a rich overseas configuration and service form. Finally, in order to continue to improve the growth of our customer demand, we will continue to expand this cooperation channel based on product diversification business strategy, and increase the supply of high-quality products in and out of the market. Because this has always been our goal in the near future and the focus of development in the future.
spk03: Yeah, thank you. So the way we approach our product offerings is really based on what we see in our client's demand. As you heard just now, we are increasingly approaching our client dialogues with comprehensive asset allocation advisory, not just selling a single product or a single fund. So what we saw from our clients is that our clients increasingly want more diversity of products. For example, we see very rapid growth in our privately-raised securities products, and we believe that's an area of opportunity for us. We also look to expand our private equity venture capital type products and our publicly raised mutual funds over time as well. Also, we see that our high net worth clients have increasing demand for overseas asset allocation. So for example, in Hong Kong, we offer tailored portfolio solutions and trading solutions to our ultra high net worth clients. Our EAM external asset manager business model as well as our asset management business in Hong Kong are both high growth areas for us. So overall, we believe what's key in this business is really that we continue to strengthen our client servicing capacity so that our distribution strength would in turn help us with our product sorting and product selection capabilities. Next question please.
spk04: Your next question comes from the line of Julian Chen of Trade Master Securities. Please ask your question.
spk06: Hello. Okay. 主持人好,我是陈俊颖。 目前担任香港超进者证券的资管部门的主管。 同时我个人也管理了一档AI的量化基金。 我的问题是海银公司目前的财富中心 主要是设在沿海地区及一二线城市。 那未來向內陸及三線城市的發展, 有沒有什麼具體的規劃呢? Hello, this is Julian Chen. I hold the position of Asset Management Department Director in Trade Master Securities, and I'm still managing an AI quantitative firm. My question is, high-end wealth service centers are concentrated in the top-tier cities and coastal areas of China. What's your footprint plan for the inland areas and the third-tier cities? Thank you.
spk09: Hello, Mr. Chen. We have basically completed the layout of the top 50 cities in the country's economy. And our coverage rate has also exceeded 90%. In recent years, we have expanded from coastal and first and second-tier cities to inland cities. Our network has reached 177 sites, covering 87 cities. At the same time, we will also combine national development goals and strategic guidance. For example, Shanghai will be the center, Beijing will be the center, and Hong Kong and Macao will be the secondary centers. We have also focused on 18 strategic cities in the city of Changjiang Economic Zone and the Central and West China Seas Development Zone. These strategic cities, such as Chengdu, Wuhan, Changsha, Xi'an, and so on, are all in the more developed areas of domestic manufacturing, and they are also very developed central cities. We have all set up. In these cities, we have already increased the number of businesses in these cities by more than 40%. So in the future, we also have a plan to enter the military in the two or three-line cities.
spk03: Thank you, Julian. So first of all, we already have very extensive national coverage. We have fiscal wealth service centers in over 90% of China's top 50 wealthiest cities. We also have a total of 177 centers covering 87 cities. So while we are established, particularly well established, I should say, in the Tier 1 cities, you know, we also follow, right, the Chinese government's overall development planning, right, when we think about, you know, our strategy in the lower tier cities, right? So, you know, Shanghai obviously is our headquarter, right? And Beijing and the Greater Bay Area, we already have two regional hubs, right? And we have very strong presence. we continue to selectively deepen our penetration in 18 strategic lower tier cities like Chengdu, Wuhan, Changsha, Xi'an, and more. So in some of these cities, there's actually a lot of wealth that should be tapped into. And we had seen very strong business growth of more than 40% per year in some of these cities. Next question, please.
spk04: Your next question comes from the line of Joseph Chan of Guatai Junan Wealth. Please ask your question.
spk07: 嗨,我是陳建安,香港國泰金融 財富管理EAM業務的主管。 我的問題是海銀公司就在上架的產品和服務有嚴苛的風險管理的體系。 那麼對於已經上架的產品是否有定期的檢視的機制呢? In English. I'm Joseph Chan of Water Hygiene and Wealth Management EAM Department. The hiring company has robust onboarding standards for new products. My question is, do you have ongoing risk management for products that have already been sold to clients? in particular for products related to real estate sector. How do you manage risk throughout the life cycle of such products? Thank you.
spk09: In addition to the strict control system for product selection, we have also established a double-layer, complete control system. In other words, this double-layer means that we have implemented risk control in both products and customers. First of all, from the perspective of the product, we need to double-check the introduction of the product. The first level is in the selection of the product. We are selected through the product manager. In addition, there is the selection of the product, the promotion of the project, and the investment strategy meeting, etc. In the end, it is through the price of the product. In terms of product control, we passed the decision-making committee. It is made up of high-level and managed by operators. There are two levels of risk control for the price of the product. For example, the selection of second-tier market private property products is selected by more than 10,000 private property managers in the market. to establish a white-list mechanism. This is from the perspective of the product. Then from the perspective of the customer, we will use the KYC of the customer and the risk assessment of the risk assessment of the risk assessment of the risk assessment of the risk assessment of the risk assessment of the risk assessment of the risk assessment At the same time, for Haiyin, it is also a bright and transparent head-to-head management and strategic thinking, because we know that the head-to-head is very important. Therefore, our high efficiency also connects the follow-up of the head-to-head and the prediction of the risk in the head, as well as the processing of the head-to-head, and so on. In this way, we can take the initiative and provide the information of the head-to-head in time to provide customer information. At the same time, in the management process of the post, we have also established detailed investment files for customers. We track the status of the product according to the configuration, type, and name of the different customers. In other words, we are a bridge between the manager and the customer to communicate with the product after the product is posted, so that the customer can understand more about the operation of the product they have posted, and thus improve the customer's post experience.
spk03: Yeah, so thank you for the question. So we have risk management processes in place on both the product side as well as the client side, and I'll explain more. So first of all, for all of our new products, they would go through our rigorous product selection system, and then our risk management system. For our product selection system, we do due diligence on the asset managers and their track record of historical performance, their strategies, their risk control, and so on. And then for real estate-linked projects that you asked, we do due diligence on the underlying assets as well. And then we have a two-tiered risk management system. First, selected products will go through our investment selection subcommittee and then our management committee, which is comprised of our senior management. We are very selective in our product selection. So, for example, in the privately-raised securities product categories, we focus on the top 100 asset managers from over 10,000 managers in China. Furthermore, we do KYC and risk appetite screening on our clients as well to ensure that not just quality products are being selected through our product selection funnel, but the right products are sold to the right clients in the right way. And then during the life cycle of the product post-investment, the objective is to maximize transparency for our clients. So we proactively help our clients review their portfolios, track any updates on their investments, flag any potential risks if we detect any concerns. In particular, for real estate-linked products, we would monitor the financials of the underlying projects and help our clients access the asset managers or do regular site visits or access the management if needed. We believe that these transparency enhancement measures can actually help our clients better understand the performance of their investments and the risk control measures that are built into the products. Thank you for the question. And next question, please.
spk04: Your next question comes from the line 10 of Schroeder's. Please ask your question.
spk02: Hi, everyone. My name is Aaron from Schroeder's Capital. I've noted that HiWin's business is expanding rapidly, but I'll be keen to learn a little bit more about your expansion plans for your international business. Thank you.
spk09: We will divide and classify the management and services for the clients. First, we will use our EAM platform to provide high-quality, customized integrated management services for the needs of super-high-quality clients. For example, we can provide mobile management services for newly listed entrepreneurs. For high-quality clients, According to their demand for diversification, we provide customers with diversified in-house products, including in-house products within the Kaiman Private Fund. At the same time, we are also studying online smart investment platforms overseas. In this way, we can provide services to potential larger and richer customer groups. In addition, we will also actively expand the secondary market for this customer through Hainin Hong Kong. Yeah, thank you for the question. So in the offshore space, our growth strategy is really what we call a multi-tiered, multi-segment strategy.
spk03: For our most demanding ultra high net worth clients, we leverage our EAM external asset manager platform in Hong Kong to provide highly tailored portfolio management solutions. So for example, we are providing custody and monetization solutions for entrepreneurs who recently had liquidity events like IPOs and company sales. And then for our core high net worth clients, we are offering and expanding our range of payment funds that invest in select sectors and thematic strategies. And then for the even larger segments of affluent clients, we are exploring the potential use of a robo-advisory technology platform to potentially tap into this high-growth client base And then in addition, we are also very active in the offshore private markets, helping clients pursue opportunistic transactions like secondary blocks, direct investments, private credit, and so on. And then last but not least, we also provide insights, content, advisory services to our clients. So for example, research from our in-house research team or Wealth Planning Advisory that is delivered by our Highwind Wealth Fiduciary Services, Hong Kong Limited. And these are the services that we provide to our offshore clients. Next question, please.
spk04: Your last question comes from the line of Derek Lam of Altis. Please ask your question.
spk05: Hi, you've got Derek Lam from OTIF Capital on the line. 我先用中文来问一下,我注意到最近海银的客户经理人数有所下降, 也想了解一下原因是为什么, 干个理财师服务的客户数,所谓的coverage ratio, 大概现在是处于一个什么样的水平, 另外也想理解一下海银有没有计划去扩充他们的销售团队呢? I'm going to repeat that in English. I noted that there was a drop in the number of relationship managers at Hywin. Is there a reason around this drop, and how is the client coverage ratio doing since then, and is there any plan for expansion of the sales force? Thanks.
spk09: Hello. We know that as the demand for high-quality customers increases, the professionalism of financial experts will increase. So in recent years, based on the reasonable talent configuration, we focus on the professionalization of financial experts. This year, based on maintaining the efficiency of the team, The assessment of a financial advisor is a double standard. It is a double standard assessment of a financial advisor based on the performance of the industry and the satisfaction of the client. What we try to do is to combine some training and the information of the client, and then improve the professionalism of the financial advisor team to serve the client. At the same time, we also use the technology to make the financial advisor more knowledgeable about the client and the market. can assist the financier to optimize the quality of the service to improve the quality of the service. So through these measures, Haiyin's financial team is actually maintaining a high level of stability. The departure rate is also less than 6%. Our front-end team has a total of 1,584 financiers. Although the total number has dropped a little, we can see from the data that our financial team's net profit this fiscal year has exceeded 52.24 million yuan, which is 16% of the total growth. So these changes have also promoted an improvement in the profits of our fiscal year companies. For the future, we will also our network strategic layout. In the key cities, we will improve the size of the financial experts, especially the core financial experts. At the same time, we will also pay attention to the improvement of the performance and service quality of the team.
spk03: Yeah, so thank you, Derek. So one of our priorities, as you heard just now, is optimizing our organizational structure and efficiency. as well as raising the professional standard of our relationship managers. So, for example, when we evaluate our relationship managers internally, we take into consideration both sales targets as well as overall client satisfaction. And then we also believe strongly in enabling and empowering our relationship managers to help them succeed with their clients. So we continue to be enhancing our training program, and we are offering the tools, the technology, the research, and all the resources that's on our platform to help our relationship managers succeed. So overall, the attrition rate of our elite tiered relationship managers was actually fairly low at less than 6%, right? So our number of RMs was 1,584, which although is a slight decrease year on year, but the transaction value per RM actually increased by 16% to 52.2 million RMB. So we believe that the productivity and the profitability per RM actually improved in this fiscal year. And then going forward, we will continue to grow, especially our elite-tiered relationship managers particularly in certain strategic cities. Thank you.
spk04: As there are no further questions at this time, I'd like to hand the conference back to our management for closing remarks.
spk03: Okay, so thank you everybody for joining our call. If you have any further questions, please feel free to reach out to us through our IR website. We look forward to speaking with everyone in our next earnings call. Have a great day. Thank you.
spk04: This concludes this conference call. You may now disconnect your line. Thank you.
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