Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Jun. 30, 2021 |
Entity File Number | 001-40238 |
Entity Registrant Name | Hywin Holdings Ltd. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | F3, Hywin Financial Centre |
Entity Address, Address Line Two | 8 Yincheng Mid. Road |
Entity Address, Address Line Three | Pudong New District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200120 |
Contact Personnel Email Address | IR@hywinwealth.com |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
ICFR Auditor Attestation Flag | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 50,000,000 |
Entity Central Index Key | 0001785680 |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | F3, Hywin Financial Centre |
Entity Address, Address Line Two | 8 Yincheng Mid. Road |
Entity Address, Address Line Three | Pudong New District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200120 |
City Area Code | +86 21 |
Local Phone Number | 80133992 |
Contact Personnel Name | Wai LOK |
ADS | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares |
Trading Symbol | HYW |
Security Exchange Name | NASDAQ |
Ordinary shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary shares, par value US$0.0001 per share |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 439,287 | $ 68,000 | ¥ 108,358 |
Restricted cash | 266,023 | 41,179 | 80,027 |
Accounts receivable | 594,061 | 91,958 | 403,693 |
Due from related parties | 126,103 | 19,520 | 321,772 |
Deposits, prepayments and other current assets | 51,540 | 7,979 | 43,451 |
Total current assets | 1,477,014 | 228,636 | 957,301 |
Property and equipment, net | 21,104 | 3,267 | 34,116 |
Intangible assets, net | 24,225 | 3,750 | 29,423 |
Long-term prepayments | 7,427 | 1,150 | 1,808 |
Deferred tax assets, net | 649 | 100 | 2,583 |
Total non-current assets | 53,405 | 8,267 | 67,930 |
Total Assets | 1,530,419 | 236,903 | 1,025,231 |
Current liabilities: | |||
Commission payable | 127,194 | 19,689 | 84,857 |
Investors' deposit | 248,277 | 38,432 | 74,262 |
Income tax payable | 116,897 | 18,095 | 115,432 |
Due to related parties | 24,799 | 3,839 | 59,254 |
Other payables and accrued liabilities | 278,697 | 43,142 | 168,887 |
Total current liabilities | 795,864 | 123,197 | 502,692 |
Commission payable-long term | 10,080 | 1,560 | 18,321 |
Deferred tax liabilities | 3,548 | 549 | 3,961 |
Total non-current liabilities | 13,628 | 2,109 | 22,282 |
Total Liabilities | 809,492 | 125,306 | 524,974 |
Equity: | |||
Ordinary shares (US$0.0001 par value; authorized 500,000,000 shares; issued and outstanding 50,000,000 shares as of June 30, 2020, 56,000,000 shares as of June 30, 2021) | 36 | 6 | 34 |
Additional paid-in capital | 503,050 | 77,870 | 500,581 |
Statutory reserves | 77,963 | 12,068 | 52,959 |
Accumulated (loss)/gain | 135,597 | 20,990 | (47,056) |
Accumulated other comprehensive (loss)/income | 4,281 | 663 | (6,261) |
Total equity | 720,927 | 111,597 | 500,257 |
Total Liabilities and Equity | ¥ 1,530,419 | $ 236,903 | ¥ 1,025,231 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 | Aug. 27, 2019 |
CONSOLIDATED BALANCE SHEETS | |||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Ordinary shares, issued shares | 56,000,000 | 50,000,000 | |
Ordinary shares, outstanding shares | 56,000,000 | 50,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | |
Net revenues | ||||
Total net revenues | ¥ 1,834,422 | $ 277,107 | ¥ 1,284,863 | ¥ 1,146,612 |
Operating cost and expenses | ||||
Compensation and benefits | 1,003,061 | 151,522 | 708,654 | 624,531 |
Share-based compensation expenses/(benefits) | 21,947 | 3,315 | (369) | 5,558 |
Sales and marketing expenses | 326,879 | 49,378 | 246,108 | 261,155 |
General and administrative expenses | 200,929 | 30,353 | 171,423 | 145,854 |
Total operating cost and expenses | 1,552,816 | 234,568 | 1,125,816 | 1,037,098 |
Income from operations | 281,606 | 42,539 | 159,047 | 109,514 |
Other income/(expenses) | ||||
Interest income, net | 1,537 | 232 | 325 | 769 |
Others (expenses)/income, net | 12,608 | 1,905 | (2,458) | (10,810) |
Total other (expense)/income, net | 14,145 | 2,137 | (2,133) | (10,041) |
Income before income tax expense | 295,751 | 44,676 | 156,914 | 99,473 |
Income tax expense | (88,094) | (13,307) | (50,763) | (38,013) |
Net (loss)/income | 207,657 | 31,369 | 106,151 | 61,460 |
Foreign currency translation (loss)/gain | 10,542 | 1,592 | (3,641) | (2,713) |
Comprehensive Income | 218,199 | 32,961 | 102,510 | 58,747 |
Wealth management | ||||
Net revenues | ||||
Total net revenues | 1,720,500 | 259,898 | 1,183,468 | 1,062,420 |
Insurance brokerage | ||||
Net revenues | ||||
Total net revenues | 75,052 | 11,337 | 90,966 | 71,969 |
Assets management | ||||
Net revenues | ||||
Total net revenues | 14,942 | 2,257 | 4,620 | ¥ 12,223 |
Others | ||||
Net revenues | ||||
Total net revenues | ¥ 23,928 | $ 3,615 | ¥ 5,809 | |
Ordinary shares | ||||
Earnings per share | ||||
Earnings per share - Basic | (per share) | ¥ 4.03 | $ 0.61 | ¥ 2.12 | ¥ 1.23 |
Earnings per share - Diluted | (per share) | ¥ 3.88 | $ 0.59 | ¥ 2.12 | ¥ 1.23 |
Weighted average number of ordinary shares outstanding: | ||||
Weighted average number outstanding - Basic | 51,578,082 | 51,578,082 | 50,000,000 | 50,000,000 |
Weighted average number outstanding - Diluted | 53,547,163 | 53,547,163 | 50,000,000 | 50,000,000 |
ADS | ||||
Earnings per share | ||||
Earnings per share - Basic | (per share) | ¥ 8.05 | $ 1.22 | ¥ 4.25 | ¥ 2.46 |
Earnings per share - Diluted | (per share) | ¥ 7.76 | $ 1.17 | ¥ 4.25 | ¥ 2.46 |
Weighted average number of ordinary shares outstanding: | ||||
Weighted average number outstanding - Basic | 25,789,041 | 25,789,041 | 25,000,000 | 25,000,000 |
Weighted average number outstanding - Diluted | 26,773,582 | 26,773,582 | 25,000,000 | 25,000,000 |
Third parties | ||||
Net revenues | ||||
Total net revenues | ¥ 1,831,278 | $ 276,632 | ¥ 1,281,248 | ¥ 1,098,580 |
Third parties | Wealth management | ||||
Net revenues | ||||
Total net revenues | 1,792,408 | 270,760 | 1,270,819 | 1,087,257 |
Third parties | Assets management | ||||
Net revenues | ||||
Total net revenues | 14,942 | 2,257 | 4,620 | 11,323 |
Third parties | Others | ||||
Net revenues | ||||
Total net revenues | 23,928 | 3,615 | 5,809 | |
Related parties | ||||
Net revenues | ||||
Total net revenues | 3,144 | 475 | 3,615 | 48,032 |
Related parties | Wealth management | ||||
Net revenues | ||||
Total net revenues | ¥ 3,144 | $ 475 | ¥ 3,615 | 47,132 |
Related parties | Assets management | ||||
Net revenues | ||||
Total net revenues | ¥ | ¥ 900 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Ordinary sharesCNY (¥)shares | Ordinary sharesUSD ($)shares | Additional paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Statutory reservesCNY (¥) | Statutory reservesUSD ($) | Accumulated (loss)/gainCNY (¥) | Accumulated (loss)/gainUSD ($) | Accumulated other comprehensive (loss)/incomeCNY (¥) | Accumulated other comprehensive (loss)/incomeUSD ($) | CNY (¥)shares | USD ($)shares |
Balance at the beginning at Jun. 30, 2018 | ¥ 34 | ¥ 499,226 | ¥ 30,134 | ¥ (41,842) | ¥ 93 | ¥ 487,645 | ||||||
Balance at the beginning (in shares) at Jun. 30, 2018 | shares | 50,000,000 | 50,000,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Disposal of VIE's subsidiaries to entities under common control (Note 3 (n)) | (5,205) | (2,862) | 2,862 | (5,205) | ||||||||
Net income for the year | 61,460 | 61,460 | ||||||||||
Profit distribution of a consolidated VIE | (150,000) | (150,000) | ||||||||||
Appropriation of statutory reserves | 10,127 | (10,127) | ||||||||||
Foreign currency translation adjustment | (2,713) | (2,713) | ||||||||||
Balance at the end at Jun. 30, 2019 | ¥ 34 | 494,021 | 37,399 | (137,647) | (2,620) | 391,187 | ||||||
Balance at the end (in shares) at Jun. 30, 2019 | shares | 50,000,000 | 50,000,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income for the year | 106,151 | 106,151 | ||||||||||
Appropriation of statutory reserves | 15,560 | (15,560) | ||||||||||
Share-based compensation recognized in equity | 6,560 | 6,560 | ||||||||||
Foreign currency translation adjustment | (3,641) | (3,641) | ||||||||||
Balance at the end at Jun. 30, 2020 | ¥ 34 | 500,581 | 52,959 | (47,056) | (6,261) | ¥ 500,257 | ||||||
Balance at the end (in shares) at Jun. 30, 2020 | shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income for the year | 207,657 | ¥ 207,657 | $ 31,369 | |||||||||
Appropriation of statutory reserves | 25,004 | (25,004) | ||||||||||
Issuance of shares through IPO | ¥ 2 | 180,675 | 180,677 | |||||||||
Issuance of shares through IPO (in shares) | shares | 6,000,000 | 6,000,000 | ||||||||||
IPO related expenses recognized in equity | (10,082) | (10,082) | ||||||||||
Establishment of subsidiaries | 4,929 | 4,929 | ||||||||||
Share-based compensation recognized in equity | 21,947 | 21,947 | ||||||||||
Capital reduction of a consolidated VIE | (195,000) | (195,000) | ||||||||||
Foreign currency translation adjustment | 10,542 | 10,542 | 1,592 | |||||||||
Balance at the end at Jun. 30, 2021 | ¥ 36 | $ 6 | ¥ 503,050 | $ 77,870 | ¥ 77,963 | $ 12,068 | ¥ 135,597 | $ 20,990 | ¥ 4,281 | $ 663 | ¥ 720,927 | $ 111,597 |
Balance at the end (in shares) at Jun. 30, 2021 | shares | 56,000,000 | 56,000,000 | 56,000,000 | 56,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Cash flows from operating activities | ||||
Net income | ¥ 207,657 | $ 31,369 | ¥ 106,151 | ¥ 61,460 |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 25,594 | 3,866 | 26,206 | 28,435 |
Bad debt provision | 1,296 | |||
Share-based compensation expenses/(benefit) | 21,947 | 3,315 | (369) | 5,558 |
Loss from disposal of long-term assets | 81 | 12 | 1,453 | 12 |
(Reversal)/provision for deferred taxes | 1,727 | 261 | (749) | (697) |
Changes in operating assets and liabilities | ||||
Accounts receivable | (190,368) | (28,757) | (111,341) | (131,679) |
Due from related parties-accounts receivable | (1,579) | (239) | 33,094 | 27,163 |
Deposits, prepayments and other current assets | (15,923) | (2,405) | 8,166 | (4,063) |
Due from related parties-deposits and prepayments | 2,191 | |||
Commission payable | 42,337 | 6,395 | 5,349 | (9,523) |
Commission payable-long term | (8,241) | (1,245) | (28,677) | 2,592 |
Investors' deposit | 174,015 | 26,287 | (14,091) | 47,730 |
Income tax payable | 1,465 | 221 | 49,450 | 35,255 |
Other payables and accrued liabilities | 75,049 | 11,337 | 56,006 | 53,757 |
Due to related parties-other payables and accrued liabilities | 272 | 41 | 1,266 | 19,559 |
Net cash provided by operating activities | 334,033 | 50,458 | 133,210 | 137,750 |
Cash flows from investing activities | ||||
Payment for office equipment, furniture and leasehold improvements | (11,945) | (1,804) | (10,441) | (21,219) |
Payment for intangible assets | (2,938) | (444) | (2,761) | (7,904) |
Proceeds from disposal of long-term assets | 252 | 38 | 90 | 15 |
Cash effect of acquisition of VIEs' subsidiaries | 15,239 | |||
Cash effect of deconsolidation of a VIE' subsidiaries | (2,918) | |||
Proceeds from disposal of a VIE's subsidiary to a related party | 10,000 | |||
Proceeds from disposal of a VIE's subsidiary to a third party | 2,310 | |||
Distribution of short-term loan receivables | (8,213) | |||
Collection of short-term loan receivables | 14,179 | 2,000 | ||
Loans lent to related parties | (107,160) | (69,118) | ||
Collection of loans lent to related parties | 45,105 | 2,229 | ||
Net cash used in investing activities | (14,631) | (2,210) | (43,439) | (95,128) |
Cash flows from financing activities | ||||
Proceeds from issuance of ordinary shares from IPO | 180,677 | 27,293 | ||
Proceeds from shareholder investment | 4,929 | 745 | ||
Proceeds from loans borrowed from third parties | 14,686 | |||
Repayment of loans borrowed from third parties | (6,983) | (1,260) | ||
Proceeds from loans borrowed from related parties | 2,028 | 754 | ||
Repayment of loans borrowed from related parties | (754) | |||
Net cash provided by/ (used in) financing activities | 185,606 | 28,038 | (5,709) | 14,180 |
Effect of exchange rate changes | 11,917 | 3,732 | (4,420) | (3,145) |
Net increase in cash, cash equivalents and restricted cash | 516,925 | 80,018 | 79,642 | 53,657 |
Cash, cash equivalents, and restricted cash at beginning of the year | 188,385 | 29,161 | 108,743 | 55,086 |
Cash, cash equivalents, and restricted cash at end of the year | 705,310 | 109,179 | 188,385 | 108,743 |
Reconciliation to amounts on consolidated balances sheets | ||||
Cash and cash equivalents | 439,287 | 68,000 | 108,358 | 17,196 |
Restricted cash | 266,023 | 41,179 | 80,027 | 91,547 |
Total cash, cash equivalents, and restricted cash | 705,310 | 188,385 | 108,743 | |
Supplemental disclosure of cash flow information | ||||
Income taxes paid | 84,871 | 12,821 | 2,075 | 3,556 |
Non-cash transactions: | ||||
Net off consideration receivables from disposal of VIE's subsidiaries with payables to the acquirors | 286,359 | |||
Net off consideration from capital reduction of a VIE with the amount due from the controlling shareholder of the VIE | ¥ 195,000 | $ 29,457 | ||
Modification from a liability share-based compensation award to an equity share-based compensation award | 6,530 | |||
Consideration receivable related to disposal of a VIE's subsidiaries to related parties | 45,756 | |||
Consideration receivable related to disposal of a VIE's subsidiary to a third party | 2,310 | |||
Consideration payable related to acquisition of VIEs' subsidiaries from third parties | ¥ 8,200 | |||
Amount due to controlling shareholder of a VIE related to profit distribution of the VIE used to offset the amount due from the controlling shareholder of the VIE | 127,500 | |||
Amount due to another shareholder of the VIE related to profit distribution of the VIE | ¥ 22,500 |
Organization
Organization | 12 Months Ended |
Jun. 30, 2021 | |
Organization | |
Organization | 1. Organization Hywin Holdings Ltd. (the “Company”), was incorporated in the Cayman Islands on July 19, 2019. The Company, through its subsidiaries, consolidated variable interest entities (the “VIEs”) and the VIEs’ subsidiaries (collectively, the “Group”), is primarily engaged in providing wealth management service, insurance brokerage service and asset management service in the People’s Republic of China (the “PRC” or “China”). Due to that foreign ownership of certain parts of the Group’s businesses is subject to restrictions under current PRC laws and regulations, the Company conducts its primary business operations through its VIEs and subsidiaries of the VIEs. The Company is ultimately controlled by Mr. HAN Hongwei (the “Founder”) since its establishment. On March 26, 2021, the Company completed its initial public offering (“IPO”) of 3,000,000 ADSs at US$10.00 per ADS on NASDAQ. Each ADS represents two ordinary shares of the Company. Reorganization In anticipation of an initial public offering (“IPO”) of its equity securities, the Company incorporated Hywin Wealth Global Limited (“Hywin Wealth Global”) under the laws of the British Virgin Islands and Hywin Wealth International Limited (“Hywin Wealth International”) under the laws of Hong Kong, the PRC, as its direct and indirect wholly-owned subsidiary, in July and August 2019, respectively. In September 2019, Hywin Wealth International incorporated a wholly-owned subsidiary, Hywin Enterprise Management Consulting (Shanghai) Co., Ltd. (“Hywin Consulting” or “Hywin WFOE”) in Shanghai, the PRC. Effective on September 29, 2019, the Company through its indirect wholly-owned PRC subsidiary, Hywin Consulting, acquire control over Hywin Wealth Management Co., Ltd. (“Hywin Wealth Management”), Shanghai Hywin Network Technology Co., Ltd. (“Hywin Network Technology”) and Shenzhen Panying Assets Management Co., Ltd. (“Shenzhen Panying”) by entering into a series of contracts (the “Contractual Agreements” or the “VIE Agreements”, which are described in detail in Note 2 to the consolidated financial statements). Hywin Wealth Management and Hywin Network Technology are both controlled by the same shareholders as the Company since incorporation. As a result of these Contractual Agreements, all of the equity owners’ rights and obligations of the VIEs were assigned to Hywin Consulting, which resulted in the equity owners lacking the ability to make decisions that have a significant effect on the VIEs, and Hywin Consulting’s ability to extract the profits from the operation of the VIEs and assume the residual benefits of the VIEs. Accordingly, the Company, through its wholly-owned subsidiaries, Hywin Wealth Global, Hywin Wealth International and Hywin WFOE, become the primary beneficiary of Hywin Network Technology, Shenzhen Panying, Hywin Wealth Management and its subsidiaries. Hywin Network Technology, Shenzhen Panying, Hywin Wealth Management and its subsidiaries became VIEs of the Company (collectively, the “VIEs”), (the “Reorganization”). Due to the fact that the Company is the primary beneficiary of the VIEs, the Company is able to include the assets, liabilities, revenues and expenses of the VIEs in its consolidated financial statements, which is consistent with the provisions of FASB Accounting Standards Codification (“ASC”) Topic 810 “Consolidation”, subtopic 10. Since the Company, its wholly-owned subsidiaries and the VIEs were effectively controlled by the same shareholders immediately before and after the Reorganization completed on September 29, 2019, as described above, the Reorganization was accounted for as a recapitalization. As a result, the Group’s consolidated financial statements have been prepared as if the current corporate structure has been in existence throughout the periods presented. The consolidation of the Company, its subsidiaries and the VIEs has been accounted for at historical cost, as a transaction between entities under common control in a manner similar to polling of interest. As of June 30, 2021, the detailed information of the Group’s consolidated subsidiaries, VIEs and significant VIEs’ subsidiaries are summarized as follows: Date of Percentage of Place of Name of the entity incorporation ownership incorporation Principle business activities Subsidiaries Hywin Wealth Global Limited July 26, 2019 100 % BVI Investment holding Hywin Wealth International Limited August 20, 2019 100 % Hong Kong Investment holding Hywin Enterprise Management Consulting (Shanghai) Co., Ltd. September 26, 2019 100 % PRC Investment holding Variable Interest Entities (“VIEs”) Hywin Wealth Management Co., Ltd. November 2, 2006 100 % PRC Investment holding and provision of wealth management service Shanghai Hywin Network Technology Co., Ltd. March 31, 2017 100 % PRC Investment holding Shenzhen Panying Asset Management Co., Ltd. May 23, 2014 100 % PRC Provision of asset management service VIEs’ significant subsidiaries Hywin Fund Distribution Co., Ltd. April 17, 2013 100 % PRC Provision of wealth management service Shanghai Ziji Information Technology Co., Ltd. November 24, 2017 100 % PRC Provision of information technology support Haiyin Wealth Management (Hong Kong) Limited May 3, 2016 100 % Hong Kong Investment holding and provision of insurance brokerage service Haiyin Insurance (Hong Kong) Co., Limited August 24, 2016 100 % Hong Kong Investment holding Hywin International Insurance Broker Limited March 23, 2006 100 % Hong Kong Provision of insurance brokerage service Haiyin International Asset Management Limited September 15, 2016 100 % Hong Kong Investment holding Hywin Asset Management (Hong Kong) Limited January 9, 2013 100 % Hong Kong Provision of wealth management and asset management services The Group primarily conducts its operations in the PRC. In January 2020, an outbreak of a novel coronavirus (COVID-19) surfaced in Wuhan City, Hubei province of the PRC, and spread all over the country during the first fiscal quarter of 2020. The outbreak caused the Chinese government to require businesses to close, people to quarantine, and also to restrict certain travel within the country until April 2020. The spread of COVID-19 has resulted in the World Health Organization declaring the outbreak of COVID-19 as a global pandemic. As of the date hereof, the outbreak of COVID-19 in China during the year ended June 30, 2021 has not caused a material negative impact on the Group’s overall business operations, financial condition, liquidity, results of operations and prospects. The extent to which COVID-19 impacts the business and financial results of the Group depends on future developments, which are uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and actions to contain COVID-19 or mitigate its impact, among others. Although the Chinese government have declared the COVID-19 outbreak largely under control within its border, the Group will continue to assess its financial impacts for the remainder of the fiscal year. There can be no assurance that this assessment will enable the Group to avoid part or all of any adverse impact from the spread of COVID-19 or its consequences, including downturns in business sentiment generally or in the Group’s sector in particular. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Jun. 30, 2021 | |
Variable Interest Entities | |
Variable Interest Entities | 2. Variable Interest Entities To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its VIEs. The significant terms of the VIE Agreements are summarized below: Exclusive Technical Consultation and Service Agreements: Pursuant to the Exclusive Technical Consultation and Service Agreement between Hywin Consulting and each of the VIEs, Hywin Consulting has the exclusive right to provide consultation and services to the VIEs in its businesses and operations, human resources, technology and intellectual property rights, in return for fee equal to 100% of the consolidated net income of each of the VIEs. Without Hywin Consulting’s prior written consent, the VIEs shall not, directly and indirectly, obtain the same or similar services as provided under this agreement from any third party, or enter into any similar agreement with any third party. Hywin Consulting has the right to determine the service fee charged to each of the VIEs under the respective agreement by considering, among other things, the complexity of the services, the time spent by employees of Hywin Consulting to provide the services, content and commercial value of the service provided, as well as the benchmark price of similar services in the market. Hywin Consulting exclusively owns any intellectual property rights arising from the performance of this Exclusive Technical Consultation and Service Agreement. The Exclusive Technical Consultation and Services Agreements remain in effect for 20 years from the date when the agreements were signed. The Exclusive Technical Consultation and Service Agreements can be extended only if Hywin Consulting gives its written consent of the extension before the expiration of the agreements and the VIEs will agree to the extension without reserve. Equity Pledge Agreements: Pursuant to a series of Equity Pledge Agreements among Hywin Consulting, each of the VIEs and each of their respective shareholders, shareholders of the VIEs shall pledge all of their equity interests in the respective VIEs to Hywin Consulting to guarantee the VIEs’ performance of relevant obligations and indebtedness under each of their respective Exclusive Technical Consultation and Service Agreement and other control agreements (“Control Agreement”). In addition, all the shareholders of the VIEs has completed in September 25, 2020 the registration of the equity pledge under the Equity Pledge Agreements with the competent local authority in the PRC. If the VIEs or any of its shareholders breach its obligation under the Control Agreement, Hywin Consulting, as pledgee, will be entitled to certain rights, including the right to dispose the pledged equity interests in order to recover these breached amounts. The respective Equity Pledge Agreements will be continuously valid until all of the shareholders of that VIE are no longer its shareholders or until that VIE’s obligations under the Control Agreements are satisfied. Equity Option Agreements: Pursuant to a series of Equity Option Agreements among Hywin Consulting, each of the VIEs and each of their respective shareholders, Hywin Consulting has the exclusive right to require all the shareholders of the respective VIEs to fulfill and complete all approval and registration procedures required under the PRC laws for Hywin Consulting to purchase, or designate one or more persons to purchase, equity interests owned by the VIEs’ shareholders in the respective VIEs, once or at multiple times at any time in part or in whole at Hywin Consulting’s sole and absolute discretion. The purchase price will be the lowest price allowed by the PRC laws. The respective Equity Option Agreements will remain effective until all the equity interest owned by each shareholder of that VIE has been legally transferred to Hywin Consulting or its designee(s). Voting Right Proxy and Financial Support Agreements: Pursuant to the Voting Rights Proxy and Financial Supporting Agreements among Hywin Consulting, each of the VIEs and each of their respective shareholders, each shareholder of the VIEs irrevocably appointed Hywin Consulting or Hywin Consulting’s designee to exercise all his/her/its rights as a shareholder of the respective VIEs under the Articles of Association of that VIE, including but not limited to the power to exercise all shareholders’ voting rights with respect to all matters to be discussed and voted in the shareholders’ meeting of that VIE. In consideration of the foregoing grant of voting rights by all of the shareholders of the VIEs, Hywin Consulting agrees to arrange for funds to be provided as necessary to the VIEs in connection with their respective business needs. In the case that any of VIEs is unable to repay the financial support, the VIEs should have no repayment obligation. The term of the Voting Rights Proxy and Financial Support Agreements is 20 years. As a result of these VIE Agreements, the Company through its wholly-owned subsidiary, Hywin Consulting, was granted with unconstrained decision making rights and power over key strategic and operational functions that would significantly impact the VIEs’ economic performance. As a result of the Exclusive Technical Consultation and Service Agreements, the Equity Pledge Agreements and the Equity Option Agreements, the Company will bear all of the VIEs’ operating costs in exchange for the 100% net income of the VIEs. Under these agreements, the Company has the absolute and exclusive right to enjoy economic benefits similar to equity ownership through the VIE Agreements with the VIEs and their shareholders. Risks in relation to the VIE structure The Company believes that its current contractual arrangements with the VIEs and their respective shareholders are valid, binding and enforceable. However, there are uncertainties and risks in relation to the Company’s VIE Structure. On March 15, 2019, the National People’s Congress of the PRC approved the Foreign Investment Law, which came into effect on January 1, 2020, replaced the trio of existing laws regulating foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law and the Wholly Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations. The Foreign Investment Law embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. However, since it is relatively new, uncertainties still exist in relation to its interpretation and implementation. Though it does not explicitly classify contractual arrangements as a form of foreign investment, there is no assurance that foreign investment via contractual arrangement would not be interpreted as a type of indirect foreign investment activities under the definition in the future. In addition, the definition contains a catch-all provision which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Therefore, it still leaves leeway for future laws, administrative regulations or provisions promulgated by the State Council to provide for contractual arrangements as a form of foreign investment. In any of these cases, it will be uncertain whether the Company’s contractual arrangements will be deemed to be in violation of the market access requirements for foreign investment under the PRC laws and regulations. Furthermore, if future laws, administrative regulations or provisions prescribed by the State Council mandate further actions to be taken by companies with respect to existing contractual arrangements, the Company may face substantial uncertainties as to whether it can complete such actions in a timely manner, or at all. Failure to take timely and appropriate measures to cope with any of these or similar regulatory compliance challenges could materially and adversely affect the Company’s current corporate structure, corporate governance and business operations. In addition, these contractual arrangements may not be as effective in providing the Company with control over the VIEs as direct ownership. Due to its VIE structure, the Company has to rely on contractual rights to effect control and management of the VIEs, which exposes it to the risk of potential breach of contract by the shareholders of the VIEs for a number of reasons. For example, their interests as shareholders of the VIEs and the interests of the Company may conflict, and the Company may fail to resolve such conflicts; the shareholders may believe that breaching the contracts will lead to greater economic benefit for them; or the shareholders may otherwise act in bad faith. If any of the foregoing were to happen, the Company may have to rely on legal or arbitral proceedings to enforce its contractual rights, including specific performance or injunctive relief, and claiming damages. Such arbitral and legal proceedings may cost substantial financial and other resources, and result in a disruption of its business, and the Company cannot assure that the outcome will be in its favor. In addition, as all of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through either arbitration or litigation in the PRC, they would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could further limit the Company’s ability to enforce these contractual arrangements. Furthermore, these contracts may not be enforceable in China if PRC government authorities or courts take a view that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event that the Company is unable to enforce any of these agreements, the Company would not be able to exert effective control over the affected VIEs and consequently, the results of operations, assets and liabilities of the affected VIEs and their subsidiaries would not be included in the Company’s consolidated financial statements. If such were the case, the Company’s cash flows, financial position and operating performance would be materially adversely affected. Total assets and liabilities presented on the Group’s consolidated balance sheets, net revenues, operating cost and expenses, and net income presented on the Group’s consolidated statements of income and comprehensive income, as well as the cash flows from operating, investing and financing activities presented on the Group’s consolidated statements of cash flows are substantially the financial position, result of operations and cash flows of the Company’s consolidated VIEs. The following balances and amounts of the VIEs were included in the Group’s consolidated financial statements as of June 30, 2020 and 2021 or for the years ended June 30, 2019, 2020 and 2021. As of June 30, 2020 2021 2021 (RMB) (RMB) (US$) Total Assets 1,025,231 1,349,713 208,931 Total liabilities 524,974 799,410 123,746 Years Ended June 30, 2019 2020 2021 2021 (RMB) (RMB) (RMB) (US$) Net revenues 1,146,612 1,284,863 1,834,422 277,107 Net income 61,460 106,151 207,662 31,369 Cash flow provided by operating activities 137,750 133,210 334,038 50,460 Cash flow used in investing activities (95,128) (43,439) (14,631) (2,210) Cash flow provided by/(used in) financing activities 14,180 (5,709) 4,895 739 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies a) Basis of presentation The Group’s consolidated financial statements are prepared and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). b) Principles of consolidation The Group’s consolidated financial statements include the accounts of the Company, its subsidiaries and its consolidated VIEs, of which the Company is the primary beneficiary, from the dates they were acquired or incorporated. All inter-company transactions and balances have been eliminated upon consolidation. The combined or consolidated financial statements for all periods presented are retrospectively adjusted to reflect the net assets from business combination transaction between entities under common control of Hywin International Insurance Broker Limited on June 11, 2018 (see Note 3 (m)). c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Group continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Group believes to be reasonable under the circumstances. Significant accounting estimates reflected in the Group’s consolidated financial statements include but are not limited to estimates and judgments applied in determination of allowance for doubtful receivables and loans, impairment losses for long-lived assets, valuation allowance for deferred tax assets, fair value measurement for share-based compensation liabilities, and assumptions related to the consolidation of entities in which the Company holds variable interests. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. d) Foreign currency translation and transactions The Group’s reporting currency is Renminbi (“RMB”). The Group’s operations are principally conducted through its subsidiaries and VIEs located in the PRC where RMB is the functional currency. For those subsidiaries and VIEs which are not located in mainland PRC and have the functional currency other than RMB, the financial statements are translated from their respective functional currencies into RMB. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income/(loss) in shareholders’ equity. Translations of amounts from RMB into US$ are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.4601 on June 30, 2021 for balance sheet items, except equity, and US$1.00 = RMB6.6199 for items in the statement of operation and comprehensive income, and statement of cash flow, representing the certificated exchange rate published by the People’s Bank of China. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2021, or at any other rate. e) Cash and cash equivalents Cash and cash equivalents consist of bank deposits, which are unrestricted as to withdrawal and use. The Group considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. f) Restricted cash Restricted cash mainly represents the investors’ uninvested cash balances temporarily deposited in the Group’s bank accounts. These cash balances were under the custody and supervision of the designated financial institution as required by the China Securities Regulatory Commission (“CSRC”), for the purpose of preventing misuse of investors’ funds. g) Accounts receivable The Group records accounts receivable at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Group’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable. The Group determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The aging schedule of the accounts receivable is as follows: For the years ended June 30, 2020 2021 2021 RMB RMB US$ Less than 3 months 345,838 466,082 72,148 More than 3 months and less than 1 year 57,855 127,979 19,810 More than 1 year — — — Total 403,693 594,061 91,958 The roll forward schedule of accounts receivable is as follows: Amount RMB US$ Balance as of July 1, 2019 290,352 42,235 Revenue (including VAT) 1,352,898 191,101 Collection (1,239,557) (176,313) Balance as of June 30, 2020 403,693 57,023 Revenue (including VAT) 1,940,407 298,117 Collection (1,750,039) (263,182) Balance as of June 30, 2021 594,061 91,958 As of June 30, 2020 and 2021, the Group recorded nil allowances for doubtful accounts against its accounts receivable, respectively. h) Property and equipment, net The Group’s property and equipment are recorded at cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated on the straight-line method after taking into account their respective estimated residual values over the following estimated useful lives: Leasehold improvements Shorter of the remaining lease terms and estimated useful lives Vehicles 5 years Office equipment 5 years Electronic devices 3-5 years When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income in the period of disposition. For the years ended June 30, 2020 and 2021, the Group recognized a loss of RMB1,453 and RMB81 (US$12) from disposal of furniture, fixture and equipment, respectively, which were included in the Group’s other expenses. i) Intangible assets, net The Group’s intangible assets primarily consisted of software purchased from third-party suppliers, Private Investment Fund Manager Certificate in PRC (“PRC private investment fund manager certificate”), Hong Kong Securities and Futures Commission financial licenses (“HKSFC financial licenses”) and Membership of Hong Kong Professional Insurance Brokerage Association (“HK insurance brokerage license”) obtained through various business combination transactions. Software is initially recorded at historic acquisition cost and amortized on a straight-line basis over the estimated useful lives of 3 to 5 years. PRC private investment fund manager certificate, HKSFC financial licenses and HK insurance brokerage license acquired through the acquisition of Shenzhen Panying, Hywin Asset Management (Hong Kong) Limited and Hywin International Insurance Broker Limited, respectively, were initially recorded at cost, as the assets acquired and liabilities assumed in the respective transactions did not constitute a business, and the transactions were accounted for as asset acquisitions. PRC private investment fund manager certificate, HKSFC financial licenses and HK insurance brokerage license were determined to have an indefinite useful life. As a result, these intangible assets should not be amortized until its useful life is determined to be no longer indefinite. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset will be tested for impairment and then be amortized prospectively over its estimated remaining useful life and accounted for in the same way as intangible assets subject to amortization. j) Impairment of long-lived assets All long-lived assets, which include tangible long-lived assets and intangible long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount of the asset and its fair value. For the years ended June 30, 2020 and 2021, there were no impairment recognized on long-lived assets. k) Fair value of financial instruments The Group’s financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, short-term loan receivables and due from related parties. The carrying values of these financial instrument approximate fair values due to their short maturities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Group evaluates its hierarchy disclosures each quarter. l) Business combination Business combinations are recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. The Group early adopted Accounting Standard Update (“ASU”) 2017-01 “Business Combination (Topic 805): Clarifying the Definition of a Business” for the two transactions discussed below, as permitted by this guidance. In accordance with ASU 2017-01, a new screen test is introduced to evaluate whether a transaction should be accounted for as an acquisition and/or disposal of a business versus assets. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. Acquisition of Shenzhen Panying Asset Management Co., Ltd On September 29, 2019, the shareholders of Shenzhen Panying, a PRC-licensed fund manager licensed in private equity investment, which was incorporated on May 23, 2014 in Shenzhen, the PRC, entered into the same series of VIE agreements with Hywin Consulting, and as a result, became a consolidated VIE of the Group. Shenzhen Panying offered asset management service and is substantially dormant. As substantially all of the fair value of the gross assets acquired in this transaction was concentrated in a single identifiable asset, i.e. PRC private investment fund manager certificate, the Group determined that the set of transferred assets and activities was not a business. As a result, the transaction was accounted for as an assets acquisition. The Group engaged a third-party valuation firm to assist with the valuation of assets acquired and liabilities assumed. A cash consideration of RMB1,900 (US$268) was payable to the shareholders of Shenzhen Panying. The table below presented the allocation of purchase price to the major classes of assets and liabilities acquired as of September 29, 2019: Amount Allocated RMB US$ Acquired intangible assets: --PRC private investment fund manager certificate 2,533 357 --Related deferred tax liability (633) (89) Total cash consideration paid 1,900 268 Acquisition of Shanghai Ziji Information Technology Co., Ltd. On May 11, 2020, for the purpose of developing the information technology of the Group, through Shanghai Youqiding Asset Management Co., Ltd. (“Youqiding”), a subsidiary of the Group’s VIE, the Group acquired 100% equity interest of Shanghai Ziji from an independent third party for a cash consideration of RMB6,300. The acquisition was using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The purchase price allocation was based on a valuation analysis that utilized and considered generally accepted valuation methodologies such as the income and cost approach. The Group engaged a third-party valuation firm to assist with the valuation of assets acquired and liabilities assumed in this business combination. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determine discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. The table below presented the allocation of purchase price to the major classes of assets and liabilities acquired as of May 11, 2020: Amount Allocated RMB US$ Cash and cash equivalents 15,200 2,147 Other current assets 2,200 311 Other current liabilities (14,200) (2,005) Acquired intangible assets: --Software 4,133 584 --Related deferred tax liability (1,033) (147) Total cash consideration paid 6,300 890 m) Disposal of VIE’s subsidiaries to entities under common control For the Group’s consolidated VIEs’ subsidiaries that were disposed to entities controlled by the same owners as the Group, substantially no gain or loss was recognized in earnings in the reporting period when the VIEs’ subsidiaries were disposed. As such, for the years ended June 30, 2020 and 2021, no deemed net distribution to the shareholders, as a result of such disposals, was recorded in the Group’s additional paid-in capital. n) Revenue recognition In accordance with ASC Topic 606, which the Group early adopted from July 1, 2017, revenues are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Group performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Wealth management service Revenue generated from providing wealth management service represents one-time distribution commissions and performance-based income the Group earns by serving as a financial products distributor. It also included revenues generated from providing insurance brokerage service which represents one-time commission the Group earns by serving as a broker to an insurance company through facilitating the sales of various insurance products offered by the insurance companies. One-time distribution commissions One-time distribution commissions generated from the Group’s wealth management service are earned from (1) distribution of various financial products (mostly private-raised fund products) on behalf of the financial product issuers and (2) serving as a broker to an insurance company through facilitating the sales of various insurance products offered by the insurance companies. (3) Distribution of financial products For distribution of financial products, the Group enters into distribution agreements with the financial product issuers to specify key terms and conditions of each arrangement, which among other things, include a pre-agreed one-time distribution commission entitled by the Group in exchange for its distribution service. Such one-time distribution commissions entitled by the Group do not include rights of return, credits or discounts, rebates, price protection or other similar privileges, once earned. One-time distribution commissions are separately negotiated for each agreement, and is calculated based on a pre-agreed annualized rate, the fixed lock-up period of the financial products (days), and total amounts purchased by the investors through the Group’s distribution channels. Revenues from one-time distribution commissions are recognized at a point in time upon establishment of a financial product, which is when the single performance obligation to provide distribution service of financial products on behalf of the product issuer to investors is fulfilled. The Group defines the “establishment of a financial product” for its revenue recognition purpose as the time when both of the following two criteria are met: (1) the investor referred by the Group has entered into a purchase or subscription contract with the product issuer and (2) the product issuer has issued a formal notice to confirm the establishment of a financial product. Different types of wealth management products would have the same timing on recognition of revenue but different commission rate. The one-time distribution commissions are earned and recognized when each individual investment is made, while the commission payments received from the product issuers are made in accordance with payment schedule agreed between the Group and the product issuer, which is usually less than three months after the end of the fund-raising period. (4) Insurance brokerage service For insurance brokerage service, the single performance obligation identified is to provide facilitation service to the insurance companies, i.e. to refer clients to buy the customers’ insurance products. The brokerage service commission are earned when each individual insurance transaction is completed and a cooling off period has elapsed. The Group enters into insurance brokerage service contracts with insurance companies to specify key terms and conditions of each arrangement, which among other things, include a pre-agreed one-time commission entitled by the Group in exchange for its sales facilitation service provided to the insurance companies. These commissions is normally calculated as a percentage (which varies depending on the type of insurance products involved) of the premium to the insurance companies from sales facilitated by the Group in respect of an insurance product. The insurance companies have the right to amend the prospective commission percentage from time to time at their entire discretion by giving written notice to the Group. The one-time commissions do not include credits or discounts, rebates, price protection or other similar privileges, once earned, but are subject to clawback under all circumstances that results in a refund of premium from the insurance companies to its clients. The clawback provision entitled the insurance companies and brokers to recall any payment previously paid to the Group or to set off against any future payment. During the years ended June 30, 2019, 2020 and 2021, there were revenue amounted HKD 0.03 million, HKD1.0 million and HKD 0.2 million subject to clawback. The Group evaluates and updates its estimates of the clawback provision of each contract at each reporting date, based on historical experiences and various other assumptions that the Group believes to be reasonable under the circumstances and concludes that the occurrence of clawback from insurance companies and brokers are considered remote. The commission payment term from insurance companies is normally on a semi-month basis, with payment paid within 6-26 days after the amount of service fee of previous statement was confirmed by the both parties. As a result, the Group recognizes the one-time commissions at a point in time when earned upon the end of the cooling off period of each insurance product sales contract signed by the insurance companies with its clients, of which the transaction was facilitated by the Group, as the Group believes that it is probable that a significant reversal in the cumulative amount of revenue recognized would not occur. The Group defines the “cooling off period” for its revenue recognition purpose as the period that the clients can unconditionally cancel their insurance contract and obtain refund after the contract has established. The performance obligation to provide referral can only be fulfilled after the cooling off period. Performance-based income In some of the Group’s fund distribution arrangements, the Group is also entitled to a performance-based income, which is based on the extend by which the related fund’s investments performance exceeds a hurdle rate. Such performance-based fees are a form of variable consideration, and are typically calculated and distributed when the cumulative return of the fund can be determined. Such performance-based income is typically recognized as revenues at a point in time, usually when the fund liquidates and the cumulative return of the fund can be determined. The Group does not bear any loss from the investors’ investments nor provides any guarantees of return with respect to the products it distributes. Asset management service Revenues generated from providing asset management service represents management fees and performance-based income the Group earns by serving as a fund manager. Management fees Management fees generated from the Group’s asset management services are earned from providing investment management service throughout the duration of various investment funds, which represents a performance obligation that is satisfied over time. Revenues of management fees are recognized over time on a monthly basis over the contract term, which is calculated in accordance with the respective fund contract or mandate agreement, either as a percentage of the total investments made by the investors or as a percentage of the fair value of the fund’s or mandate’s net assets, calculated regularly. The management fees do not include any rights of return, credits or discounts, rebates, price protection or other similar privileges, once determined. Performance-based income In a typical asset management arrangement in which the Group serves as a fund manager, beside management fee, the Group is also entitled to a performance-based fee based on the extent by which the fund’s investment performance exceeds a certain threshold. The performance-based fees earned by the Group are a form of variable consideration in the Group’s asset management contracts with customers. Such revenues of performance-based income from providing asset management service are recognized at a point in time when the performance of the fund can be determined. Others Revenue generated from others mainly represents referral service fee for oversea property purchases and information technology service fee for providing transaction process management service to fund managers. These revenues are recognized at a point in time based on the value of property purchased and the fund-raising amount of the products The following tables present the Group’s revenues disaggregated by service line and timing of revenue recognition: Year Ended June 30, 2019 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,062,420 71,969 1,422 — 1,135,811 Revenues recognized over time — — 10,801 — 10,801 Total 1,062,420 71,969 12,223 — 1,146,612 Year Ended June 30, 2020 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,183,468 90,966 — 5,809 1,280,243 Revenues recognized over time — — 4,620 — 4,620 Total 1,183,468 90,966 4,620 5,809 1,284,863 Year Ended June 30, 2021 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,720,500 75,052 1,322 23,928 1,820,802 Revenues recognized over time — — 13,620 — 13,620 Total 1,720,500 75,052 14,942 23,928 1,834,422 Amounts in US$ 259,898 11,337 2,257 3,615 277,107 o) Compensation and benefit Compensation and benefits primarily include base salary, sales commission and other compensation and benefits of the Group’s relationship managers, who directly contribute to the Group’s revenues generation activities, such as distribution of fund products and insurance products. Unpaid commissions were separately presented as commission payable and commission payable-long term on the Group’s consolidated balance sheets, depending on whether the amounts are expected to be paid within or after one year of each reporting date. p) Income taxes The Group follows the guidance of ASC Topic 740 “Income taxes” and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date. q) Uncertain tax positions The Group uses a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties recognized, if any, will be classified as a component of the provisions for income taxes. The tax returns of the Group’s Hong Kong and PRC subsidiaries and VIEs are subject to examination by the relevant local tax authorities. According to the Departmental Interpretation and Practice Notes No.11 (Revised) (“DIPN11”) of the Hong Kong Inland Revenue Ordinance (the “HK tax laws”), an investigation normally covers the six years of the assessment prior to the year of the assessment in which the investigation commences. In the case of fraud and willful evasion, the investigation is extended to cover ten years of assessment. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. For the years ended June 30, 2019, 2020 and 2021, the Group did not have any material interest or penalties associated with tax positions. The Group did not have any significant unrecognized uncertain tax positions as of June 30, 2020 or 2021. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. r) Share-based compensation The Group’s share-based payment transactions with employees are measured based on the grant-date fair value of the instruments, with recognition of either a corresponding increase in equity or a liability, depending on whether the instruments granted satisfy the equity or liability classification criteria. Refer to Note 18 for details. s) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of chief executive officer of the Group’s management team. Consequently, the Group has determined that it has only one reportable operating segment, which is the provision of financial services. t) Comprehensive income Comprehensive income includes all changes in equity from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the years presented, total comprehensive income included foreign currency translation adjustments. u) Earnings per share Basic earnings per share is computed by dividing income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Ordinary shares issuable upon the conversion of the convertible preferred shares are included in the computation of diluted earnings per share on an “if-converted” basis when the impact is dilutive. v) Commitments and contingencies The Group accrues estimated losses from loss contingencies by a charge to income when information available before financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired, or a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. As of June 30, 2020 and 2021, the Group recognized RMB9,037 and RMB1,300 contingent liabilities, respectively, relating to litigations against Hywin Wealth Management. The Group believed that it is probable that these liabilities had been incurred as of each reporting date and the amount of the losses could be reasonably estimated. Contingent liabilities recognized by the Group were included in the Group’s other payables and accrued liabilities account. w) Comparative information Certain items in prior years consolidated financial statements have been reclassified to conform to the current period’s presentation to facilitate comparison. x) Recent issued or adopted accounting standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. The amendments in this ASU requires that a lessee recognize the assets |
Deposits, Prepayments and Other
Deposits, Prepayments and Other Current Assets | 12 Months Ended |
Jun. 30, 2021 | |
Deposits, Prepayments and Other Current Assets | |
Deposits, Prepayments and Other Current Assets | 4. Deposits, Prepayments and Other Current Assets As of June 30, 2020 2021 2021 RMB RMB US$ Deposits for office spaces leases 26,351 26,055 4,034 Prepaid rental and property management fee 11,351 16,025 2,481 Prepaid listing fee 3,973 — — Other current assets 1,776 9,460 1,464 43,451 51,540 7,979 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jun. 30, 2021 | |
Property and Equipment, Net | |
Property and Equipment, Net | 5. Property and Equipment, Net As of June 30, 2020 2021 2021 RMB RMB US$ Leasehold improvements 114,143 115,352 17,856 Electronic equipment 42,526 44,322 6,861 Furniture, fixtures and other equipment 21,834 21,271 3,293 Motor vehicles 2,806 2,533 392 Property and equipment, cost 181,309 183,478 28,402 Less: accumulated depreciation (147,193) (162,374) (25,135) 34,116 21,104 3,267 Depreciation expenses for the years ended June 30, 2020 and 2021 were approximately RMB23,617 and RMB18,715, respectively. For the years ended June 30, 2020 and 2021, no impairment loss was recognized for the Group’s property and equipment. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2021 | |
Intangible Assets, Net | |
Intangible Assets, Net | 6. Intangible Assets, Net As of June 30, 2020 2021 2021 RMB RMB US$ Computer software 19,936 22,829 3,534 Licenses 16,542 15,295 2,367 Intangible assets, cost 36,478 38,124 5,901 Less: accumulated amortization (7,055) (13,899) (2,151) 29,423 24,225 3,750 Amortization expenses for the years ended June 30, 2020 and 2021 were approximately RMB2,589 and RMB6,879, respectively. For the years ended June 30, 2020 and 2021, no impairment loss was recognized for the Group’s intangible assets. |
Investors' Deposit
Investors' Deposit | 12 Months Ended |
Jun. 30, 2021 | |
Investors' Deposit | |
Investors' Deposit | 7. Investors’ Deposit The balance represents the investors’ uninvested cash balances temporarily deposited in the Groups bank account. These deposits were under the custody and supervision of the designated financial institution as required by CSRC, for the purpose of preventing misuse of investors’ funds. |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 12 Months Ended |
Jun. 30, 2021 | |
Other Payables and Accrued Liabilities | |
Other Payables and Accrued Liabilities | 8. Other Payables and Accrued Liabilities As of June 30, 2020 2021 2021 RMB RMB US$ Value added tax and other taxes payable 80,098 170,079 26,327 Accrued payroll 38,821 59,644 9,233 Service fee payable (1) 13,639 7,458 1,154 Payables related to office rental and property management fee 10,308 26,968 4,175 Contingent liabilities related to legal proceedings (2) 9,037 1,300 201 Equity purchase payable (3) 6,300 3,990 618 Other current liabilities 10,684 9,258 1,434 168,887 278,697 43,142 (1) These are mainly payables to third-party information technology service providers. (2) Hywin Wealth Management is currently a defendant of one interrelated civil proceeding, prosecuted by three individual investors, which related to contracts fraud and misrepresentation conducted by a former relationship manager of the Group were probable. Based on the assessment of the Group as of each reporting date, the ruling of these cases was probable in favor of the plaintiffs. As a result, the Group accrued RMB9,037 and RMB1,300 contingent liabilities as of June 30, 2020 and 2021, respectively, based on the estimated losses that it would suffer from the outcome of these civil proceedings. (3) This amount represented the cash consideration payable to a third-party for the acquisition of Shanghai Ziji in May 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income Taxes | 9. Income Taxes The entities within the Group file separate tax returns in the respective tax jurisdictions in which they operate. Cayman Islands The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. British Virgin Islands (“BVI”) Under the current laws of the BVI, the Group’s subsidiaries incorporated in BVI are not subject to tax on income or capital gains. Additionally, upon payments of dividends by these BVI companies to its respective shareholders, no BVI withholding tax will be imposed. Hong Kong, PRC Under the current HK tax laws, before April 1, 2018, the income tax rate of Hong Kong was 16.5%. Effective from April 1, 2018, a two-tier corporate income tax system was officially implemented in Hong Kong, which is 8.25% for the first HK$2.0 million profits, and 16.5% for the subsequent profits. Under the HK tax laws, it is exempted from the Hong Kong income tax on its foreign-derived income. In addition, payments of dividends from Hong Kong subsidiaries to the Company are not subject to any Hong Kong withholding tax. Mainland, PRC The Group’s PRC subsidiaries and VIEs are governed by the income tax law of the PRC and are subject to the PRC enterprise income tax (“EIT”). The EIT rate of PRC is 25%, which applies to both domestic and foreign invested enterprises. For the years ended June 30, 2019, 2020 and 2021, the income tax rate of all the Group’s PRC subsidiaries and VIEs is 25%, except for Shanghai Ziji which enjoyed 15% preferential income tax rate since December 2019. For the years ended June 30, 2019, 2020 and 2021, the Group’s income tax expense consisted of: Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Current (38,801) (51,512) (86,367) (13,046) Deferred 788 749 (1,727) (261) (38,013) (50,763) (88,094) (13,307) A reconciliation of the income tax expense determined at the PRC statutory income tax rate to the Group’s actual income tax expense is as follows: Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Income before income tax expense 99,473 156,914 295,751 44,676 PRC statutory income tax rate 25 % 25 % 25 % 25 % Income tax at PRC statutory income tax rate (24,868) (39,229) (73,938) (11,169) Impact of different tax rates in other jurisdictions (1,558) (3,823) (1,100) (166) Preferential tax treatments and tax holiday effects 143 43 (73) (11) Super deduction of qualified R&D expenditures — 2 13 2 Expenses not deductible (including expenses accrued for share-based compensation amounting to RMB1,390, RMB (92) (reversed) and RMB5,487 for the years ended June 30, 2019, 2020 and 2021, respectively) (5,201) (5,621) (9,737) (1,471) Valuation allowance on deferred tax assets (6,529) (2,135) (3,259) (492) Income tax expense (38,013) (50,763) (88,094) (13,307) The Group’s deferred tax liabilities were recorded as a result of recognition of the identifiable intangible assets acquired from various acquisition transactions. The Group’s deferred tax liabilities at June 30, 2021 and changes for the two years then ended were as follows: Amount RMB Balance as of June 30, 2019 2,226 Increase during the year 1,667 Decrease due to amortization of intangible assets (17) Exchange translation adjustment 85 Balance as of June 30, 2020 3,961 Increase during the year — Decrease due to amortization of intangible assets (207) Exchange translation adjustment (206) Balance as of June 30, 2021 3,548 Amount in US$ 549 The Group’s deferred tax assets at June 30, 2020 and 2021 were as follows: As of June 30, 2020 2021 2021 RMB RMB US$ Tax loss carry forward 9,242 12,266 1,899 Contingent losses related to legal proceedings 2,259 325 50 Others 329 329 51 Less, valuation allowance (9,247) (12,271) (1,900) 2,583 649 100 The Group’s deferred tax assets valuation allowance at June 30, 2021 and changes for the two years then ended were as follows: Amount RMB Balance as of June 30, 2019 20,520 Increase during the year 2,135 Decrease due to disposal of VIEs’ entities (13,771) Increase due to acquisition of VIEs’ entities 279 Exchange translation adjustment 84 Balance as of June 30, 2020 9,247 Increase during the year 3,259 Exchange translation adjustment (235) Balance as of June 30, 2021 12,271 Amount in US$ 1,900 Total net operating losses (NOLs) carryforwards of the Group’s VIEs in mainland China is RMB26,049 and RMB41,871 as of June 30, 2020 and 2021, respectively. The NOLs carryforwards of the Group’s VIEs in mainland China as of June 30, 2021 will expire between the calendar years 2022 through 2026. The NOLs carryforwards of the Group’s VIEs in Hong Kong are RMB16,804 and RMB12,198 as of June 30, 2020 and 2021, respectively. The NOLs of the Group’s VIEs in Hong Kong can be carried forward indefinitely. The related deferred tax assets were calculated based on the respective net operating losses incurred by each of the consolidated VIEs and the respective corresponding enacted tax rate that will be in effect in the period in which the losses are expected to be utilized. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Group’s experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more-likely-than-not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax laws. For the year ended June 30, 2020, the Group reversed valuation allowance in a net amount of RMB11,357 mainly due to the disposal of VIEs’ entities. For the year ended June 30, 2021, the Group recorded valuation allowance in a net amount of RMB3,259. The current EIT law also imposes a 10% withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Jun. 30, 2021 | |
Ordinary Shares | |
Ordinary Shares | 10. Ordinary Shares On August 27, 2019, the Company repurchased and canceled all previous issued and outstanding ordinary shares and increased its authorized share capital to US$50 by the authorization of 500,000,000 shares with a par value of US$0.0001 each. On the same day, the Company issued an aggregate of 50,000,000 ordinary shares at a price of US$0.0001 per share for a total consideration of US$5, pro-rata to the shareholders of the Company as of such date. In accordance with SEC SAB Topic 4, the nominal share issuance was accounted for as a stock split and that all share and per share information has been retrospectively restated to reflect such stock split for all periods presented. As of June 30, 2020, 50,000,000 ordinary shares were issued at par value, equivalent to share capital of US$5. On March 26, 2021, the Company completed its IPO of 3,000,000 ADSs at US$10.00 per ADS on NASDAQ. Each ADS represents two ordinary shares of the Company. As of June 30, 2021, 56,000,000 ordinary shares were issued at par value, equivalent to share capital of US$6, which number of shares was same as that outstanding as of the issuance date of the financial statements. |
Profit Distribution
Profit Distribution | 12 Months Ended |
Jun. 30, 2021 | |
Profit Distribution | |
Profit Distribution | 11. Profit Distribution On May 30, 2019, one of the Group’s consolidated VIEs, Hywin Wealth Management declared to distribute RMB150,000 profit to its shareholders, which resulted in an RMB127,500 and RMB22,500 dividend payable to Hywin Financial Holding Group Co., Ltd. (“Hywin Financial Holding”) and Ms. Wang Dian, respectively. Hywin Financial Holding and Ms. Wang Dian holds 85% and 15% equity interest of Hywin Wealth Management, respectively. The dividend payable to Hywin Financial Holding was used to partially offset the amount due from this entity as of June 30, 2019. No dividends were declared and paid during the years ended June 30, 2020 and 2021. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2021 | |
Restricted Net Assets | |
Restricted Net Assets | 12. Restricted Net Assets A significant portion of the Group’s operations are conducted through its PRC (excluding Hong Kong) subsidiary and VIEs, the Group’s ability to pay dividends is primarily dependent on receiving distributions of funds from its PRC subsidiary and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by its PRC subsidiary and VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations, and after it has met the PRC requirements for appropriation to statutory reserves. Paid in capital of the PRC subsidiary and VIEs included in the Group’s consolidated net assets are also non-distributable for dividend purposes. In accordance with the PRC regulations on Enterprises with Foreign Investment, a WFOE established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A WFOE is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Hywin WFOE is subject to the above mandated restrictions on distributable profits. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide a statutory common reserve of at least 10% of its annual after-tax profit until such reserve has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide for a discretionary surplus reserve, at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. All of the Group’s PRC consolidated VIEs are subject to the above mandated restrictions on distributable profits. As a result of these PRC laws and regulations, the Group’s PRC subsidiary and VIEs are restricted in their ability to transfer a portion of their net assets to the Company. As of June 30, 2020 and 2021, net assets restricted in the aggregate, which include paid-in capital and statutory reserve funds of the Group’s PRC subsidiary and VIEs, that are included in the Company’s consolidated net assets were approximately RMB552,959 and RMB409,838, respectively. Financial information of Parent Company The Company was incorporated on July 19, 2019 and became parent company of the Group upon the completion of the Reorganization on September 29, 2019. The following disclosures presented the financial positions of the Parent Company as of June 30, 2020 and 2021, and results of operations and cash flows for the years ended June 30, 2019, 2020 and 2021, as if the current corporate structure has been in existence throughout the periods presented. The condensed financial statements of the Parent Company have been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Parent Company used the equity method to account for investments in its subsidiaries and VIEs. The Parent Company, its subsidiaries and VIEs were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. For the purpose of the Parent Company’s condensed financial statements, its investments in subsidiaries and VIEs are reported using the equity method of accounting. The Company is a Cayman Islands company, therefore, is not subjected to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Balance Sheets (In thousands, except for share and per share data, or otherwise stated) As of June 30, 2020 2021 2021 (RMB) (RMB) (US$) Assets Investments in subsidiaries and VIEs 500,257 720,927 111,597 Total Assets 500,257 720,927 111,597 Liabilities and Equity Equity: Ordinary shares (US$0.0001 par value; authorized 500,000,000 shares; issued outstanding 34 36 6 Additional paid-in capital 500,581 503,050 77,870 Accumulated gain 5,903 213,560 33,058 Accumulated other comprehensive (loss)/income (6,261) 4,281 663 Total equity 500,257 720,927 111,597 Total Liabilities and Equity 500,257 720,927 111,597 Statements of Operations (In thousands, except for share and per share data, or otherwise stated) Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Share of (loss)/income from subsidiaries and VIEs (88,540) 106,151 207,657 31,369 Net (loss)/income (88,540) 106,151 207,657 31,369 Statements of Cash Flows (In thousands, except for share and per share data, or otherwise stated) Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Cash flows from operating activities — — — — Investment in subsidiaries — — (180,677) (27,293) Cash flows from investing activities — — (180,677) (27,293) Proceeds from issuance of ordinary shares from IPO — — 180,677 27,293 Cash flows from financing activities — — 180,677 27,293 Effect of exchange rate changes — — — — Net change in cash and cash equivalents — — — — Cash and cash equivalents at beginning of the year — — — — Cash and cash equivalents at end of the year — — — — |
Employee Defined Contribution P
Employee Defined Contribution Plan | 12 Months Ended |
Jun. 30, 2021 | |
Employee Defined Contribution Plan | |
Employee Defined Contribution Plan | 13. Employee Defined Contribution Plan Full time employees of the Group’s subsidiaries and VIEs in mainland and Hong Kong, the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. The related labor regulations of mainland and Hong Kong, PRC require that the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The employee benefits were expensed as incurred. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits were approximately RMB58,206, RMB51,000 and RMB47,362 for the years ended June 30, 2019, 2020 and 2021, respectively. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Jun. 30, 2021 | |
Concentration of Risk | |
Concentration of Risk | 14. Concentration of Risk Credit risk Financial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, short-term loan receivables, due from related parties and deposit to suppliers. As of June 30, 2021, all of the Groups’ cash and cash equivalents and restricted cash was held by major financial institutions located in Mainland and Hong Kong, China. The Group believes that these financial institutions located in Mainland and Hong Kong China are of high credit quality. For accounts receivable, short-term loan receivables, due from related parties and deposit to suppliers, the Group extends credit based on an evaluation of the customer’s or other parties’ financial condition, generally without requiring collateral or other security. In order to minimize the credit risk, the Group delegated a team responsible for credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. Further, the Group reviews the recoverable amount of each individual receivable at each balance sheet date to ensure that adequate allowances are made for doubtful accounts. In this regard, the Group considers that the Group’s credit risk for accounts receivable, short-term loan receivables, due from related parties and deposit to suppliers is significantly reduced. Concentration of customers The following tables summarized the information about the Group’s concentration of customers for the years ended June 30, 2019, 2020 and 2021 or as of June 30, 2020 and 2021, respectively: A B C D E F G H I J Year Ended June 30, 2021 Revenues, customer concentration risk 18 % 11 % * * * * * * — — Year Ended June 30, 2020 Revenues, customer concentration risk * — — — * 26 % 15 % 10 % * * Year Ended June 30, 2019 Revenues, customer concentration risk — — — — — — — — 16 % * As of June 30, 2021 (1) Accounts receivable (from third parties and related parties), customer concentration risk * * 18 % 16 % 14 % * — * — — As of June 30, 2020 (1) Accounts receivable (from third parties and related parties), customer concentration risk * — — — * 22 % 34 % * — — (1) The denominator for the calculation of accounts receivable, customer concentration risk was the total amount of accounts receivable from third parties and accounts receivable from related parties (as disclosed in Note 15 below) as of June 30, 2020 and 2021, respectively. * Less than 10%. - No transaction incurred for the reporting period/no balance existed as of the reporting date. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Balances and Transactions | |
Related Party Balances and Transactions | 15. Related Party Balances and Transactions The following is a list of the related parties with whom the Group conducted significant transactions during the three years ended June 30, 2021, and their relation with the Group: Name of the related parties Relation with the Group Hywin Financial Holding Group Co., Ltd. (“Hywin Financial Holding”) An entity ultimately controlled by Mr. HAN Hongwei Ms. WANG Dian Senior executive officer Ms. WANG Pei Spouse of Mr. HAN Hongwei Mr. HAN Wangjuncheng Son of Mr. HAN Hongwei Yushang Group Co., Ltd. a direct subsidiary of Hywin Financial Holding Shanghai Yushang Commodity International Trade Co., Ltd. an indirect subsidiary of Hywin Financial Holding Shanghai Youqiding Asset Management Co., Ltd. (dissolved in January 2020) an indirect subsidiary of Hywin Financial Holding Hywin Asset Management Co., Ltd. a direct subsidiary of Hywin Financial Holding Tibet Haiyinhui Network Technology Co., Ltd. (dissolved in June 2021) an entity ultimately controlled by Mr. HAN Hongwei Yinling Group Entities (related parties of the Company for the years ended June 30, 2019 and 2020): Entities controlled by Ms. WANG Dian Shanghai Yinling Industrial Co., Ltd. (Former Name: Yinling Finance Lease (Shanghai) Co., Ltd.) Shanghai Yinling Financial Information Service Co., Ltd. Shanghai Yinling Equity Investment Fund Co., Ltd. Shanghai Yinling Asset Management Co., Ltd. Shanghai Liuyi Industrial Co., Ltd. (Former Name: Shanghai Yinlin Commercial Factoring Co., Ltd.) Five Bulls Group Entities: Entities controlled by an immediate family member of Mr. HAN Hongwei Shanghai Five Bulls Asset Management Co., Ltd. Five Bulls International Holding Group Limited Five Bulls Holdings Limited Shenzhen Five Bulls Industrial Investment Co., Ltd. (Former name: Shenzhen Five Bulls Equity Investment Fund Management Co., Ltd.) Affiliated companies of Shenzhen Five Bulls Industrial Investment Co., Ltd. and Five Bulls Holdings Limited Real Estate Group Entities (related parties of the Company for the years ended June 30, 2019 and 2020): Entities controlled by an immediate family member of Mr. HAN Hongwei Shanghai Lanyun Real Estate Co., Ltd. Shanghai Danxiao Real Estate Co., Ltd. Shanghai Suxiao Real Estate Co., Ltd. Shanghai Yulan Real Estate Co., Ltd. Shanghai Yubi Real Estate Co., Ltd. Shanghai Biyu Real Estate Co., Ltd. As of June 30, 2020 and 2021, the related party balances of the Group are listed as follows: As of June 30, 2020 2021 2021 RMB RMB US$ Amount due from related parties Deposit and prepayment to related parties for office lease contracts: Real Estate Group Entities 2,248 — — Amounts lent to a related party (2) : Hywin Financial Holding Group Co., Ltd. (“Hywin Financial Holding”) 273,768 126,103 19,520 Due from a related party related to disposal of VIEs’ subsidiaries: Ms. WANG Pei (3) 45,756 — — Due from related parties total 321,772 126,103 19,520 Amount due to related parties Payable to related parties related to office lease contracts: Real Estate Group Entities (4) 34,726 — — 34,726 — — Loans borrowed from related parties, net (5) : Wang Dian 1,941 1,891 293 Han Yu 19 19 3 Yushang Group Co., Ltd. 7 328 52 Han Wangjuncheng 61 61 9 2,028 2,299 357 Dividend payable to a related party: Ms. Wang Dian 22,500 22,500 3,482 Due to related parties-total 59,254 24,799 3,839 For the years ended June 30, 2019, 2020 and 2021, the significant related party transactions summarized by different natures are as follows: For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Wealth management and asset management services revenues from related parties Yinling Group Entities 47,132 — — — Hywin Asset Management Co., Ltd. — 3,615 3,144 475 Five Bulls Group Entities 900 — — — 48,032 3,615 3,144 475 Rental expenses charged by related parties Real Estate Group Entities 28,399 32,268 — — 28,399 32,268 — — For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Service fee charged by a related party Consulting service fee charged by Shanghai Yinling Financial Information Service Co., Ltd. 277 — — — 277 — — — Net loans borrowed from/lent to related parties (5) Loan lent to a related party, net Hywin Financial Holding Group Co., Ltd. (1) 69,118 107,160 1,579 239 69,118 107,160 1,579 239 Collection of loans lent to related parties, net Shanghai Yushang Commodity International Trade Co. Ltd. — 40,000 — — Yushang Group Co., Ltd. — 334 — — Shanghai Youqiding Asset Management Co., Ltd. 2,229 4,771 — — 2,229 45,105 — — Loans borrowed from related parties, net Tibet Haiyinhui Network Technology Co., Ltd. 754 1,941 — — Wang Dian — 19 — — Yushang Group Co., Ltd. — 7 321 48 Han Wangjuncheng — 61 — — 754 2,028 321 48 Note 1 On August 28, 2020, the Board of Directors of the Company approved a capital reduction of RMB195,000 in our VIE, Hywin Wealth Management, which resulted in a payable to Hywin Financial Holdings and Ms. WANG Dian, on a pro rata basis with the amount of RMB165,750 and RMB 29,250 respectively, which was used to partially offset the receivable balance due from Hywin Financial Holding Group Co., Ltd.. Note 2 The loan was lent to related party for the purpose of supporting the business development of the related party, which was unsecured, interest free and payment on demand. Note 3 Amount due from Ms. Wang Pei as of June 30, 2020 represented the cash consideration receivable related to the disposal of 15% equity interest of a subsidiary of Hywin Wealth Management in June 2019. The disposal has been subsequently revised to dispose the equity interest to Hywin Financial Holding instead of Ms. Wang Pei with a same consideration in August 2020. The change of disposal did not have impact on the Company’s consolidated financial statements, because the Company did not maintain any control of the subsidiary since the disposal in June 2019. Note 4 Real Estate Group Entities are no longer related parties of the Company as of June 30, 2021, therefore the balance and transactions between these entities and the Company are not shown as the related party balance and transactions. Note 5 The loans lent to/borrowed from the related party are unsecured, interest free and payment on demand. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 16. Commitments and Contingencies The following table sets forth the Group’s operating lease commitment as of June 30, 2021: Office Rental RMB US$ Year ending June 30, -2022 95,043 14,712 -2023 33,039 5,114 -2024 12,051 1,865 -2025 790 122 -2026 — — thereafter — — Total 140,923 21,813 For the years ended December 31, 2019, 2020 and 2021, rental expenses under operating leases were approximately RMB125,603, RMB125,828 and RMB111,432, respectively. Based on management’s assessment of the outcome of the legal proceedings as discussed in Note 8, the Group accrued RMB9,037 and RMB1,300 contingent liabilities as of June 30, 2020 and 2021, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | 17. Earnings Per Share Basic and diluted earnings per share for each of the years presented is calculated as follows: Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Numerators Net Income 61,460 106,151 207,657 31,369 Denominators Weighted average number of ordinary shares outstanding-basic 50,000,000 50,000,000 51,578,082 51,578,082 Weighted average number of ordinary shares outstanding- diluted 50,000,000 50,000,000 53,547,163 53,547,163 Weighted average number of ADS outstanding-basic 25,000,000 25,000,000 25,789,041 25,789,041 Weighted average number of ADS outstanding- diluted 25,000,000 25,000,000 26,773,582 26,773,582 Earnings per ordinary share – basic 1.23 2.12 4.03 0.61 Earnings per ordinary share- diluted 1.23 2.12 3.88 0.59 Earnings per ADS – basic 2.46 4.25 8.05 1.22 Earnings per ADS- diluted 2.46 4.25 7.76 1.17 Diluted shares are calculated by using the weighted average number of ordinary shares outstanding adjusted to include the potentially dilutive effect of outstanding share-based awards, unless their inclusion in the calculation is anti-dilutive. For the years ended June 30, 2019 and 2020, the effects of all outstanding options issued by one of the Group’s consolidated VIEs before the Reorganization were excluded from the computation of diluted earnings per share, as their effects would be anti-dilutive. The earnings per ADS for the years ended June 30, 2019 and 2020 were provided retrospectively for reference only as the ADS was issued on March 26, 2021. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Compensation | |
Share-based Compensation | 18. Share-based Compensation On January 1, 2016, January 1, 2017 and January 8, 2018, one of the Group’s consolidated VIEs, Hywin Wealth Management granted and issued options to its employees for the purchase of an aggregate of 8,998,465 shares of Hywin Wealth Management. The option exercise price was set at RMB1.23, RMB1.35 and RMB1.83 per share for the options granted on January 1, 2016, 2017 and January 8, 2018, respectively. All these options were vested upon issuance. The options issued had a repurchase feature, which gave the awardees the right to require the Group to repurchase part or all of the options the employees hold for cash. Given the condition of the grants, vests, repurchases and exercises of the relevant options issued historically were all under similar conditions, the Group considered all these options were granted and issued under a share incentive plan, or the 2018 Option Plan. On September 30, 2019, the Company adopted a share option plan (the “2019 Option Plan”) for the employees to purchase ordinary shares of the Company. Under the 2019 Option Plan, the maximum aggregate number of ordinary shares available for issuance would be 2,250,000 ordinary shares. Each grantee of the 2018 Option Plan entered into an amended grant letter with Hywin Wealth Management and the Company, all parties agreed to replace the issued and outstanding options granted by Hywin Wealth Management with the options granted by the Company under the 2019 Option Plan, and terminate the 2018 Option Plan, with each one option granted by the Company replacing ten options granted by Hywin Wealth Management. The exercise price replaced by the 2019 Option Plan was US$1.894, US$1.946 and US$2.801 per share for the options originally granted in January 1, 2016, 2017 and January 8, 2018, respectively. The 2019 Option Plan also granted to the employees 1,499,753 new options of the Company with nil exercise price. The exercise period of any options granted under the 2019 Option Plan shall start from one year after the IPO of the Company through December 31, 2023. The options granted and issued under the 2018 Option Plan were treated as liabilities due to the repurchase feature attached, allowing the employees to cause the Company to repurchase part or all of the options they hold, which permitted the employees to avoid bearing the risks and rewards normally associated with equity share ownership. As a result, they were measured at fair value when granted and remeasured as of each reporting date, with the changes in fair value of these liability classified awards be recorded in earnings in each reporting period. As of September 30, 2019, the options granted and issued under the 2018 Option plan were replaced by the 2019 Option plan with no repurchase feature. According to ASC718, the transaction was classified as modification from a liability award to an equity award. The aggregate amount of compensation cost recognized is generally the fair-value-based measure of the award on the modification date, and no longer has to be remeasured at a fair-value-based amount in each reporting period until settlement. Expenses related to options granted and issued under the 2018 Option plan and losses/(gain) incurred as a result of increase/(decrease) in fair value of these option liabilities for the years ended June 30, 2019 and 3 months ended September 30, 2019 were recorded as share-based compensation expenses/(benefit) in the Group’s statement of income and comprehensive income. The options under 2019 Option plan granted to employees contain an explicit service condition, which the options will be considered to be forfeited if the grantees resigned within 5 years after the date they joined the 2018 Option plan or 2019 Option plan (“5-year condition”). Also, all grantees were restricted to convert the options into ordinary shares until a certain period subsequent to the IPO date (“lock up period”). If the grantee resigned from the Company before the IPO or during the lock up period, the Company has the right to cancel their options. The 5-year condition and lock up period are service condition and the exercise of the options were contingent to the IPO, which is a performance condition. Under ASC 718, if the vesting (or exercisability) of an award is based on the satisfaction of both a service and performance condition, the entity must initially determine which outcomes are probable and recognize the compensation cost over the longer of the explicit or implicit service period. Because an IPO generally is not considered to be probable until the IPO is effective, the compensation cost of the 2019 Option plan will only be recognized upon the completion of IPO based on the fair value of grant date as the cumulative effect on current and prior periods of the change in the estimated number of awards for which the requisite service is expected to be rendered. As of June 30, 2020, however, the Company considered the obligation under the 2018 Option plan still exist after the replacement of 2019 Option plan because no forfeiture is expected due to the replacement. As a result, previously recorded share-based compensation liabilities as of September 30, 2019 (i.e. RMB 6,560) based on fair value under 2018 Option plan would be transferred to equity, and the change in value due to the replacement would be recognized after the IPO occurs. As of March 26, 2021, the Company completed its IPO on NASDAQ, which is regarded as the milestone that it fulfilled the performance condition. As such, the fair value of the options and the compensation cost under the 2019 Option plan should be recognized from March 26, 2021. The grant date of the 2019 Option plan is considered to be September 30, 2019. The requisite service period should start from the earliest signing date of the respective option plan until the later of the one year after IPO successfully and 5 years after earliest option plan signing date. Nil options were exercisable as of June 30, 2021. The following table summarizes the option activities under the 2018 Option Plan and 2019 Option Plan during the years ended June 30, 2019, 2020 and 2021, respectively: Weighted Average Weighted Remaining Average Number Contractual Exercise of options Life (Years) Price (RMB) Outstanding and exercisable, June 30, 2018 8,998,465 1.25 1.50 Granted/Vested — — — Forfeited — — — Exercised — — — Repurchased (1,495,995) 1.08 1.23 Outstanding and exercisable, June 30, 2019 7,502,470 0.25 1.55 Granted/Vested — — — Forfeited — — — Exercised — — — Replaced by 2019 Option plan as of September 30, 2019 (7,502,470) — 1.55 Outstanding and exercisable, June 30, 2020 — — — Recognition of options originally under 2018 Option Plan and replaced by 2019 Option plan as of March 26, 2021 750,247 1.11 16.43 Recognition of new options granted under 2019 Option plan as of March 26, 2021 1,499,753 2.00 — Forfeited (235,613) — 0.74 Exercised — — — Outstanding, June 30, 2021 2,014,387 1.48 5.29 Exercisable, June 30, 2021 — — — The Group estimated the fair value of these options using the Binomial option-pricing model, with assistant of an independent third-party valuation firm. The following table summarized the key assumptions developed and adopted by the Group for the determination of the options as of June 30, 2018, 2019 and September 30, 2019, respectively: Options granted in 2016 As of June 30, As of June 30, As of September 30, 2018 2019 2019 (4) Risk-free interest rate (1) 3.29 % 2.61 % 2.75 % Dividend yield (2) 0 % 0 % 0 % Expected volatility (3) 35.4 % 47.4 % 49.1 % Year to maturity (4) 1.25 0.25 Nil Exercise Price (5) 1.23 1.23 1.23 Fair value per ordinary share (6) 1.55 3.13 2.43 Fair value per option (RMB) 0.45 1.91 1.20 Options granted in 2017 As of June 30, As of June 30, As of September 30, 2018 2019 2019 (4) Risk-free interest rate (1) 3.29 % 2.61 % 2.75 % Dividend yield (2) 0 % 0 % 0 % Expected volatility (3) 35.4 % 47.4 % 49.1 % Year to maturity (4) 1.25 0.25 Nil Exercise Price (5) 1.35 1.35 1.35 Fair value per ordinary share (6) 1.55 3.13 2.43 Fair value per option (RMB) 0.38 1.79 1.08 Options granted in 2018 As of June 30, As of June 30, As of September 30, 2018 2019 2019 (4) Risk-free interest rate (1) 3.29 % 2.61 % 2.75 % Dividend yield (2) 0 % 0 % 0 % Expected volatility (3) 35.4 % 47.4 % 49.1 % Year to maturity (4) 1.25 0.25 Nil Exercise Price (5) 1.83 1.83 1.83 Fair value per ordinary share (6) 1.55 3.13 2.43 Fair value per option (RMB) 0.17 1.32 0.60 As of September 30, Options granted in 2019 Option Plan 2019 (4) Risk-free interest rate (1) 2.75 % Dividend yield (2) 0 % Expected volatility (3) 49.1 % Year to maturity (4) Nil Exercise Price (5) 0 Fair value per ordinary share (6) 24.3 Fair value per option (RMB) 24.3 (1) The Group estimated the risk-free interest rate based on the yield of China Benchmark Bond with a maturity period close to the expected term of the options. (2) Dividend yield is based on the fact that the Group does not expect to pay any cash dividends in the foreseeable future. (3) The computation of expected volatility is based on the fluctuation of the historical share prices of comparable companies. When selecting the comparable companies whose stock prices had been used by the Group to determine its expected share price volatility, the selection criteria primarily included: i) companies which are primarily engaged in wealth management and asset management related businesses; ii) companies that have its primary operations in Greater China; and iii) relevant companies’ information is both available and publicly disclosed. (4) The maturity date of the options is assumed to be on September 30, 2019, as a new option plan, i.e. the 2019 Option Plan was adopted to replace the 2018 Option Plan on such date. (5) Exercise prices are the contract exercise prices of the options. (6) Fair value of the underlying ordinary shares is estimated by the Group using guideline publicly-traded comparable method under market approach with reference to the stock price of the comparable publicly-traded companies. In addition, the Group also considered various other factors that the Group believed to be reasonable under the circumstances, including its results of operations, financials position, external market conditions affecting the wealth management service industry, trends within the wealth management and assets management services industry etc. For the year ended June 30, 2019 and 2020, there were no newly issued options under 2018 Option Plan. For the years ended June 30, 2021, 2,250,000 options were granted under the 2019 Option plan and 235,613 options were forfeited. The Company recognized share compensation expense for the share options under the 2019 Option plan of RMB21,947 for the year ended June 30, 2021. In August 2018, Hywin Wealth Management repurchased 1,495,995 options issued and outstanding, which resulted in an amount of RMB674 decrease in share-based compensation liabilities as at June 30, 2019 compared with June 30, 2018. The options granted and issued under the 2018 Option Plan were treated as liabilities due to the repurchase feature was attached. As a result, they were measured at fair value when granted and remeasured as of each reporting date. For the years ended June 30, 2019 and 2020, loss and gain related to changes in fair value of the option liabilities recorded as share-based compensation expenses/(benefit) in the Group’s statements of income and comprehensive income were expenses of RMB5,558 and benefit of RMB369, respectively. There are no share-based compensation liabilities as of June 30, 2020 and 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2021 | |
Subsequent Events | |
Subsequent Events | 19. Subsequent Events There are no material subsequent events of the Company as of the date of this report. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Basis of presentation | a) Basis of presentation The Group’s consolidated financial statements are prepared and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). |
Principles of consolidation | b) Principles of consolidation The Group’s consolidated financial statements include the accounts of the Company, its subsidiaries and its consolidated VIEs, of which the Company is the primary beneficiary, from the dates they were acquired or incorporated. All inter-company transactions and balances have been eliminated upon consolidation. The combined or consolidated financial statements for all periods presented are retrospectively adjusted to reflect the net assets from business combination transaction between entities under common control of Hywin International Insurance Broker Limited on June 11, 2018 (see Note 3 (m)). |
Use of estimates | c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Group continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Group believes to be reasonable under the circumstances. Significant accounting estimates reflected in the Group’s consolidated financial statements include but are not limited to estimates and judgments applied in determination of allowance for doubtful receivables and loans, impairment losses for long-lived assets, valuation allowance for deferred tax assets, fair value measurement for share-based compensation liabilities, and assumptions related to the consolidation of entities in which the Company holds variable interests. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. |
Foreign currency translation and transactions | d) Foreign currency translation and transactions The Group’s reporting currency is Renminbi (“RMB”). The Group’s operations are principally conducted through its subsidiaries and VIEs located in the PRC where RMB is the functional currency. For those subsidiaries and VIEs which are not located in mainland PRC and have the functional currency other than RMB, the financial statements are translated from their respective functional currencies into RMB. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income/(loss) in shareholders’ equity. Translations of amounts from RMB into US$ are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.4601 on June 30, 2021 for balance sheet items, except equity, and US$1.00 = RMB6.6199 for items in the statement of operation and comprehensive income, and statement of cash flow, representing the certificated exchange rate published by the People’s Bank of China. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2021, or at any other rate. |
Cash and cash equivalents | e) Cash and cash equivalents Cash and cash equivalents consist of bank deposits, which are unrestricted as to withdrawal and use. The Group considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. |
Restricted cash | f) Restricted cash Restricted cash mainly represents the investors’ uninvested cash balances temporarily deposited in the Group’s bank accounts. These cash balances were under the custody and supervision of the designated financial institution as required by the China Securities Regulatory Commission (“CSRC”), for the purpose of preventing misuse of investors’ funds. |
Accounts receivable | g) Accounts receivable The Group records accounts receivable at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Group’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable. The Group determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The aging schedule of the accounts receivable is as follows: For the years ended June 30, 2020 2021 2021 RMB RMB US$ Less than 3 months 345,838 466,082 72,148 More than 3 months and less than 1 year 57,855 127,979 19,810 More than 1 year — — — Total 403,693 594,061 91,958 The roll forward schedule of accounts receivable is as follows: Amount RMB US$ Balance as of July 1, 2019 290,352 42,235 Revenue (including VAT) 1,352,898 191,101 Collection (1,239,557) (176,313) Balance as of June 30, 2020 403,693 57,023 Revenue (including VAT) 1,940,407 298,117 Collection (1,750,039) (263,182) Balance as of June 30, 2021 594,061 91,958 As of June 30, 2020 and 2021, the Group recorded nil allowances for doubtful accounts against its accounts receivable, respectively. |
Property and equipment, net | h) Property and equipment, net The Group’s property and equipment are recorded at cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated on the straight-line method after taking into account their respective estimated residual values over the following estimated useful lives: Leasehold improvements Shorter of the remaining lease terms and estimated useful lives Vehicles 5 years Office equipment 5 years Electronic devices 3-5 years When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income in the period of disposition. For the years ended June 30, 2020 and 2021, the Group recognized a loss of RMB1,453 and RMB81 (US$12) from disposal of furniture, fixture and equipment, respectively, which were included in the Group’s other expenses. |
Intangible assets, net | i) Intangible assets, net The Group’s intangible assets primarily consisted of software purchased from third-party suppliers, Private Investment Fund Manager Certificate in PRC (“PRC private investment fund manager certificate”), Hong Kong Securities and Futures Commission financial licenses (“HKSFC financial licenses”) and Membership of Hong Kong Professional Insurance Brokerage Association (“HK insurance brokerage license”) obtained through various business combination transactions. Software is initially recorded at historic acquisition cost and amortized on a straight-line basis over the estimated useful lives of 3 to 5 years. PRC private investment fund manager certificate, HKSFC financial licenses and HK insurance brokerage license acquired through the acquisition of Shenzhen Panying, Hywin Asset Management (Hong Kong) Limited and Hywin International Insurance Broker Limited, respectively, were initially recorded at cost, as the assets acquired and liabilities assumed in the respective transactions did not constitute a business, and the transactions were accounted for as asset acquisitions. PRC private investment fund manager certificate, HKSFC financial licenses and HK insurance brokerage license were determined to have an indefinite useful life. As a result, these intangible assets should not be amortized until its useful life is determined to be no longer indefinite. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset will be tested for impairment and then be amortized prospectively over its estimated remaining useful life and accounted for in the same way as intangible assets subject to amortization. |
Impairment of long-lived assets | j) Impairment of long-lived assets All long-lived assets, which include tangible long-lived assets and intangible long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount of the asset and its fair value. For the years ended June 30, 2020 and 2021, there were no impairment recognized on long-lived assets. |
Fair value of financial instruments | k) Fair value of financial instruments The Group’s financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, short-term loan receivables and due from related parties. The carrying values of these financial instrument approximate fair values due to their short maturities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Group evaluates its hierarchy disclosures each quarter. |
Business combination | l) Business combination Business combinations are recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. The Group early adopted Accounting Standard Update (“ASU”) 2017-01 “Business Combination (Topic 805): Clarifying the Definition of a Business” for the two transactions discussed below, as permitted by this guidance. In accordance with ASU 2017-01, a new screen test is introduced to evaluate whether a transaction should be accounted for as an acquisition and/or disposal of a business versus assets. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. Acquisition of Shenzhen Panying Asset Management Co., Ltd On September 29, 2019, the shareholders of Shenzhen Panying, a PRC-licensed fund manager licensed in private equity investment, which was incorporated on May 23, 2014 in Shenzhen, the PRC, entered into the same series of VIE agreements with Hywin Consulting, and as a result, became a consolidated VIE of the Group. Shenzhen Panying offered asset management service and is substantially dormant. As substantially all of the fair value of the gross assets acquired in this transaction was concentrated in a single identifiable asset, i.e. PRC private investment fund manager certificate, the Group determined that the set of transferred assets and activities was not a business. As a result, the transaction was accounted for as an assets acquisition. The Group engaged a third-party valuation firm to assist with the valuation of assets acquired and liabilities assumed. A cash consideration of RMB1,900 (US$268) was payable to the shareholders of Shenzhen Panying. The table below presented the allocation of purchase price to the major classes of assets and liabilities acquired as of September 29, 2019: Amount Allocated RMB US$ Acquired intangible assets: --PRC private investment fund manager certificate 2,533 357 --Related deferred tax liability (633) (89) Total cash consideration paid 1,900 268 Acquisition of Shanghai Ziji Information Technology Co., Ltd. On May 11, 2020, for the purpose of developing the information technology of the Group, through Shanghai Youqiding Asset Management Co., Ltd. (“Youqiding”), a subsidiary of the Group’s VIE, the Group acquired 100% equity interest of Shanghai Ziji from an independent third party for a cash consideration of RMB6,300. The acquisition was using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The purchase price allocation was based on a valuation analysis that utilized and considered generally accepted valuation methodologies such as the income and cost approach. The Group engaged a third-party valuation firm to assist with the valuation of assets acquired and liabilities assumed in this business combination. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determine discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. The table below presented the allocation of purchase price to the major classes of assets and liabilities acquired as of May 11, 2020: Amount Allocated RMB US$ Cash and cash equivalents 15,200 2,147 Other current assets 2,200 311 Other current liabilities (14,200) (2,005) Acquired intangible assets: --Software 4,133 584 --Related deferred tax liability (1,033) (147) Total cash consideration paid 6,300 890 |
Disposal of VIE's subsidiaries to entities under common control | m) Disposal of VIE’s subsidiaries to entities under common control For the Group’s consolidated VIEs’ subsidiaries that were disposed to entities controlled by the same owners as the Group, substantially no gain or loss was recognized in earnings in the reporting period when the VIEs’ subsidiaries were disposed. As such, for the years ended June 30, 2020 and 2021, no deemed net distribution to the shareholders, as a result of such disposals, was recorded in the Group’s additional paid-in capital. |
Revenue recognition | n) Revenue recognition In accordance with ASC Topic 606, which the Group early adopted from July 1, 2017, revenues are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Group performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Wealth management service Revenue generated from providing wealth management service represents one-time distribution commissions and performance-based income the Group earns by serving as a financial products distributor. It also included revenues generated from providing insurance brokerage service which represents one-time commission the Group earns by serving as a broker to an insurance company through facilitating the sales of various insurance products offered by the insurance companies. One-time distribution commissions One-time distribution commissions generated from the Group’s wealth management service are earned from (1) distribution of various financial products (mostly private-raised fund products) on behalf of the financial product issuers and (2) serving as a broker to an insurance company through facilitating the sales of various insurance products offered by the insurance companies. (3) Distribution of financial products For distribution of financial products, the Group enters into distribution agreements with the financial product issuers to specify key terms and conditions of each arrangement, which among other things, include a pre-agreed one-time distribution commission entitled by the Group in exchange for its distribution service. Such one-time distribution commissions entitled by the Group do not include rights of return, credits or discounts, rebates, price protection or other similar privileges, once earned. One-time distribution commissions are separately negotiated for each agreement, and is calculated based on a pre-agreed annualized rate, the fixed lock-up period of the financial products (days), and total amounts purchased by the investors through the Group’s distribution channels. Revenues from one-time distribution commissions are recognized at a point in time upon establishment of a financial product, which is when the single performance obligation to provide distribution service of financial products on behalf of the product issuer to investors is fulfilled. The Group defines the “establishment of a financial product” for its revenue recognition purpose as the time when both of the following two criteria are met: (1) the investor referred by the Group has entered into a purchase or subscription contract with the product issuer and (2) the product issuer has issued a formal notice to confirm the establishment of a financial product. Different types of wealth management products would have the same timing on recognition of revenue but different commission rate. The one-time distribution commissions are earned and recognized when each individual investment is made, while the commission payments received from the product issuers are made in accordance with payment schedule agreed between the Group and the product issuer, which is usually less than three months after the end of the fund-raising period. (4) Insurance brokerage service For insurance brokerage service, the single performance obligation identified is to provide facilitation service to the insurance companies, i.e. to refer clients to buy the customers’ insurance products. The brokerage service commission are earned when each individual insurance transaction is completed and a cooling off period has elapsed. The Group enters into insurance brokerage service contracts with insurance companies to specify key terms and conditions of each arrangement, which among other things, include a pre-agreed one-time commission entitled by the Group in exchange for its sales facilitation service provided to the insurance companies. These commissions is normally calculated as a percentage (which varies depending on the type of insurance products involved) of the premium to the insurance companies from sales facilitated by the Group in respect of an insurance product. The insurance companies have the right to amend the prospective commission percentage from time to time at their entire discretion by giving written notice to the Group. The one-time commissions do not include credits or discounts, rebates, price protection or other similar privileges, once earned, but are subject to clawback under all circumstances that results in a refund of premium from the insurance companies to its clients. The clawback provision entitled the insurance companies and brokers to recall any payment previously paid to the Group or to set off against any future payment. During the years ended June 30, 2019, 2020 and 2021, there were revenue amounted HKD 0.03 million, HKD1.0 million and HKD 0.2 million subject to clawback. The Group evaluates and updates its estimates of the clawback provision of each contract at each reporting date, based on historical experiences and various other assumptions that the Group believes to be reasonable under the circumstances and concludes that the occurrence of clawback from insurance companies and brokers are considered remote. The commission payment term from insurance companies is normally on a semi-month basis, with payment paid within 6-26 days after the amount of service fee of previous statement was confirmed by the both parties. As a result, the Group recognizes the one-time commissions at a point in time when earned upon the end of the cooling off period of each insurance product sales contract signed by the insurance companies with its clients, of which the transaction was facilitated by the Group, as the Group believes that it is probable that a significant reversal in the cumulative amount of revenue recognized would not occur. The Group defines the “cooling off period” for its revenue recognition purpose as the period that the clients can unconditionally cancel their insurance contract and obtain refund after the contract has established. The performance obligation to provide referral can only be fulfilled after the cooling off period. Performance-based income In some of the Group’s fund distribution arrangements, the Group is also entitled to a performance-based income, which is based on the extend by which the related fund’s investments performance exceeds a hurdle rate. Such performance-based fees are a form of variable consideration, and are typically calculated and distributed when the cumulative return of the fund can be determined. Such performance-based income is typically recognized as revenues at a point in time, usually when the fund liquidates and the cumulative return of the fund can be determined. The Group does not bear any loss from the investors’ investments nor provides any guarantees of return with respect to the products it distributes. Asset management service Revenues generated from providing asset management service represents management fees and performance-based income the Group earns by serving as a fund manager. Management fees Management fees generated from the Group’s asset management services are earned from providing investment management service throughout the duration of various investment funds, which represents a performance obligation that is satisfied over time. Revenues of management fees are recognized over time on a monthly basis over the contract term, which is calculated in accordance with the respective fund contract or mandate agreement, either as a percentage of the total investments made by the investors or as a percentage of the fair value of the fund’s or mandate’s net assets, calculated regularly. The management fees do not include any rights of return, credits or discounts, rebates, price protection or other similar privileges, once determined. Performance-based income In a typical asset management arrangement in which the Group serves as a fund manager, beside management fee, the Group is also entitled to a performance-based fee based on the extent by which the fund’s investment performance exceeds a certain threshold. The performance-based fees earned by the Group are a form of variable consideration in the Group’s asset management contracts with customers. Such revenues of performance-based income from providing asset management service are recognized at a point in time when the performance of the fund can be determined. Others Revenue generated from others mainly represents referral service fee for oversea property purchases and information technology service fee for providing transaction process management service to fund managers. These revenues are recognized at a point in time based on the value of property purchased and the fund-raising amount of the products The following tables present the Group’s revenues disaggregated by service line and timing of revenue recognition: Year Ended June 30, 2019 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,062,420 71,969 1,422 — 1,135,811 Revenues recognized over time — — 10,801 — 10,801 Total 1,062,420 71,969 12,223 — 1,146,612 Year Ended June 30, 2020 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,183,468 90,966 — 5,809 1,280,243 Revenues recognized over time — — 4,620 — 4,620 Total 1,183,468 90,966 4,620 5,809 1,284,863 Year Ended June 30, 2021 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,720,500 75,052 1,322 23,928 1,820,802 Revenues recognized over time — — 13,620 — 13,620 Total 1,720,500 75,052 14,942 23,928 1,834,422 Amounts in US$ 259,898 11,337 2,257 3,615 277,107 |
Compensation and benefit | o) Compensation and benefit Compensation and benefits primarily include base salary, sales commission and other compensation and benefits of the Group’s relationship managers, who directly contribute to the Group’s revenues generation activities, such as distribution of fund products and insurance products. Unpaid commissions were separately presented as commission payable and commission payable-long term on the Group’s consolidated balance sheets, depending on whether the amounts are expected to be paid within or after one year of each reporting date. |
Income taxes | p) Income taxes The Group follows the guidance of ASC Topic 740 “Income taxes” and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date. |
Uncertain tax positions | q) Uncertain tax positions The Group uses a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties recognized, if any, will be classified as a component of the provisions for income taxes. The tax returns of the Group’s Hong Kong and PRC subsidiaries and VIEs are subject to examination by the relevant local tax authorities. According to the Departmental Interpretation and Practice Notes No.11 (Revised) (“DIPN11”) of the Hong Kong Inland Revenue Ordinance (the “HK tax laws”), an investigation normally covers the six years of the assessment prior to the year of the assessment in which the investigation commences. In the case of fraud and willful evasion, the investigation is extended to cover ten years of assessment. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. For the years ended June 30, 2019, 2020 and 2021, the Group did not have any material interest or penalties associated with tax positions. The Group did not have any significant unrecognized uncertain tax positions as of June 30, 2020 or 2021. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. |
Share-based compensation | r) Share-based compensation The Group’s share-based payment transactions with employees are measured based on the grant-date fair value of the instruments, with recognition of either a corresponding increase in equity or a liability, depending on whether the instruments granted satisfy the equity or liability classification criteria. Refer to Note 18 for details. |
Segment reporting | s) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of chief executive officer of the Group’s management team. Consequently, the Group has determined that it has only one reportable operating segment, which is the provision of financial services. |
Comprehensive income | t) Comprehensive income Comprehensive income includes all changes in equity from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the years presented, total comprehensive income included foreign currency translation adjustments. |
Earnings per share | u) Earnings per share Basic earnings per share is computed by dividing income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Ordinary shares issuable upon the conversion of the convertible preferred shares are included in the computation of diluted earnings per share on an “if-converted” basis when the impact is dilutive. |
Commitments and contingencies | v) Commitments and contingencies The Group accrues estimated losses from loss contingencies by a charge to income when information available before financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired, or a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. As of June 30, 2020 and 2021, the Group recognized RMB9,037 and RMB1,300 contingent liabilities, respectively, relating to litigations against Hywin Wealth Management. The Group believed that it is probable that these liabilities had been incurred as of each reporting date and the amount of the losses could be reasonably estimated. Contingent liabilities recognized by the Group were included in the Group’s other payables and accrued liabilities account. |
Comparative information | w) Comparative information Certain items in prior years consolidated financial statements have been reclassified to conform to the current period’s presentation to facilitate comparison. |
Recent issued or adopted accounting standards | x) Recent issued or adopted accounting standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. The amendments in this ASU requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. All other entities shall adopt the amendments in this ASU for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842)–Targeted Improvements”, which provide another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date (such as January 1, 2019, for calendar year-end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In November 2019, the FASB issued ASU No. 2019-10, “Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)-Effective date”, which defer the effective date for all other entities by an additional year to for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Group, as an emerging growth company, is taking advantage of the extended transition period offered to private entities and will adopt the amendments in this ASU for its fiscal year ending June 30, 2022. The Group is currently evaluating the impact on its consolidated financial position and results of operations upon adopting the leasing standard. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendments in this ASU require the measurement and recognition of expected credit losses for financial assets held at amortized cost. The amendments in this ASU replace the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. In November 2018, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”, which among other things, clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. For public entities, the amendments in these ASUs are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. As a result of the issuance of ASU No. 2019-10 as discussed above, the effective date of ASU No. 2016-13 and its subsequent updates for all other entities was deferred to for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Group is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. The amendments in this ASU eliminate, add and modify certain disclosure requirements for fair value measurements. The amendments in this ASU, among other things, require public companies to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Group does not expect the adoption of these amendments to have a material impact on its consolidated financial position and results of operations. Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Group’s consolidated financial position and results of operations upon adoption. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Organization | |
Schedule of detailed information of the Group's consolidated subsidiaries, VIEs and significant VIEs' subsidiaries | Date of Percentage of Place of Name of the entity incorporation ownership incorporation Principle business activities Subsidiaries Hywin Wealth Global Limited July 26, 2019 100 % BVI Investment holding Hywin Wealth International Limited August 20, 2019 100 % Hong Kong Investment holding Hywin Enterprise Management Consulting (Shanghai) Co., Ltd. September 26, 2019 100 % PRC Investment holding Variable Interest Entities (“VIEs”) Hywin Wealth Management Co., Ltd. November 2, 2006 100 % PRC Investment holding and provision of wealth management service Shanghai Hywin Network Technology Co., Ltd. March 31, 2017 100 % PRC Investment holding Shenzhen Panying Asset Management Co., Ltd. May 23, 2014 100 % PRC Provision of asset management service VIEs’ significant subsidiaries Hywin Fund Distribution Co., Ltd. April 17, 2013 100 % PRC Provision of wealth management service Shanghai Ziji Information Technology Co., Ltd. November 24, 2017 100 % PRC Provision of information technology support Haiyin Wealth Management (Hong Kong) Limited May 3, 2016 100 % Hong Kong Investment holding and provision of insurance brokerage service Haiyin Insurance (Hong Kong) Co., Limited August 24, 2016 100 % Hong Kong Investment holding Hywin International Insurance Broker Limited March 23, 2006 100 % Hong Kong Provision of insurance brokerage service Haiyin International Asset Management Limited September 15, 2016 100 % Hong Kong Investment holding Hywin Asset Management (Hong Kong) Limited January 9, 2013 100 % Hong Kong Provision of wealth management and asset management services |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Variable Interest Entities | |
Summary of balances and amounts of the VIEs included in the Group's consolidated financial statements | As of June 30, 2020 2021 2021 (RMB) (RMB) (US$) Total Assets 1,025,231 1,349,713 208,931 Total liabilities 524,974 799,410 123,746 Years Ended June 30, 2019 2020 2021 2021 (RMB) (RMB) (RMB) (US$) Net revenues 1,146,612 1,284,863 1,834,422 277,107 Net income 61,460 106,151 207,662 31,369 Cash flow provided by operating activities 137,750 133,210 334,038 50,460 Cash flow used in investing activities (95,128) (43,439) (14,631) (2,210) Cash flow provided by/(used in) financing activities 14,180 (5,709) 4,895 739 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of aging schedule of the accounts receivable | The aging schedule of the accounts receivable is as follows: For the years ended June 30, 2020 2021 2021 RMB RMB US$ Less than 3 months 345,838 466,082 72,148 More than 3 months and less than 1 year 57,855 127,979 19,810 More than 1 year — — — Total 403,693 594,061 91,958 |
Roll forward schedule of accounts receivable | The roll forward schedule of accounts receivable is as follows: Amount RMB US$ Balance as of July 1, 2019 290,352 42,235 Revenue (including VAT) 1,352,898 191,101 Collection (1,239,557) (176,313) Balance as of June 30, 2020 403,693 57,023 Revenue (including VAT) 1,940,407 298,117 Collection (1,750,039) (263,182) Balance as of June 30, 2021 594,061 91,958 |
Summary of estimated useful lives of property and equipment | Leasehold improvements Shorter of the remaining lease terms and estimated useful lives Vehicles 5 years Office equipment 5 years Electronic devices 3-5 years |
Summary of allocation of purchase price to the major classes of assets and liabilities acquired | The table below presented the allocation of purchase price to the major classes of assets and liabilities acquired as of September 29, 2019: Amount Allocated RMB US$ Acquired intangible assets: --PRC private investment fund manager certificate 2,533 357 --Related deferred tax liability (633) (89) Total cash consideration paid 1,900 268 The table below presented the allocation of purchase price to the major classes of assets and liabilities acquired as of May 11, 2020: Amount Allocated RMB US$ Cash and cash equivalents 15,200 2,147 Other current assets 2,200 311 Other current liabilities (14,200) (2,005) Acquired intangible assets: --Software 4,133 584 --Related deferred tax liability (1,033) (147) Total cash consideration paid 6,300 890 |
Summary of revenues disaggregated by service line and timing of revenue recognition | The following tables present the Group’s revenues disaggregated by service line and timing of revenue recognition: Year Ended June 30, 2019 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,062,420 71,969 1,422 — 1,135,811 Revenues recognized over time — — 10,801 — 10,801 Total 1,062,420 71,969 12,223 — 1,146,612 Year Ended June 30, 2020 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,183,468 90,966 — 5,809 1,280,243 Revenues recognized over time — — 4,620 — 4,620 Total 1,183,468 90,966 4,620 5,809 1,284,863 Year Ended June 30, 2021 Wealth Insurance Assets Total Net Management Brokerage Management Others Revenues RMB RMB RMB RMB RMB Revenues recognized at a point in time 1,720,500 75,052 1,322 23,928 1,820,802 Revenues recognized over time — — 13,620 — 13,620 Total 1,720,500 75,052 14,942 23,928 1,834,422 Amounts in US$ 259,898 11,337 2,257 3,615 277,107 |
Deposits, Prepayments and Oth_2
Deposits, Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Deposits, Prepayments and Other Current Assets | |
Schedule of deposits, prepayments and other current assets | As of June 30, 2020 2021 2021 RMB RMB US$ Deposits for office spaces leases 26,351 26,055 4,034 Prepaid rental and property management fee 11,351 16,025 2,481 Prepaid listing fee 3,973 — — Other current assets 1,776 9,460 1,464 43,451 51,540 7,979 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property and Equipment, Net | |
Schedule of property and equipment, net | As of June 30, 2020 2021 2021 RMB RMB US$ Leasehold improvements 114,143 115,352 17,856 Electronic equipment 42,526 44,322 6,861 Furniture, fixtures and other equipment 21,834 21,271 3,293 Motor vehicles 2,806 2,533 392 Property and equipment, cost 181,309 183,478 28,402 Less: accumulated depreciation (147,193) (162,374) (25,135) 34,116 21,104 3,267 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Intangible Assets, Net | |
Schedule of intangible assets, net | As of June 30, 2020 2021 2021 RMB RMB US$ Computer software 19,936 22,829 3,534 Licenses 16,542 15,295 2,367 Intangible assets, cost 36,478 38,124 5,901 Less: accumulated amortization (7,055) (13,899) (2,151) 29,423 24,225 3,750 |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Other Payables and Accrued Liabilities | |
Schedule of other payables and accrued liabilities | As of June 30, 2020 2021 2021 RMB RMB US$ Value added tax and other taxes payable 80,098 170,079 26,327 Accrued payroll 38,821 59,644 9,233 Service fee payable (1) 13,639 7,458 1,154 Payables related to office rental and property management fee 10,308 26,968 4,175 Contingent liabilities related to legal proceedings (2) 9,037 1,300 201 Equity purchase payable (3) 6,300 3,990 618 Other current liabilities 10,684 9,258 1,434 168,887 278,697 43,142 (1) These are mainly payables to third-party information technology service providers. (2) Hywin Wealth Management is currently a defendant of one interrelated civil proceeding, prosecuted by three individual investors, which related to contracts fraud and misrepresentation conducted by a former relationship manager of the Group were probable. Based on the assessment of the Group as of each reporting date, the ruling of these cases was probable in favor of the plaintiffs. As a result, the Group accrued RMB9,037 and RMB1,300 contingent liabilities as of June 30, 2020 and 2021, respectively, based on the estimated losses that it would suffer from the outcome of these civil proceedings. (3) This amount represented the cash consideration payable to a third-party for the acquisition of Shanghai Ziji in May 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Schedule of income tax expense | Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Current (38,801) (51,512) (86,367) (13,046) Deferred 788 749 (1,727) (261) (38,013) (50,763) (88,094) (13,307) |
Schedule of reconciliation of the income tax expense between PRC statutory income tax rate and actual income tax expense | Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Income before income tax expense 99,473 156,914 295,751 44,676 PRC statutory income tax rate 25 % 25 % 25 % 25 % Income tax at PRC statutory income tax rate (24,868) (39,229) (73,938) (11,169) Impact of different tax rates in other jurisdictions (1,558) (3,823) (1,100) (166) Preferential tax treatments and tax holiday effects 143 43 (73) (11) Super deduction of qualified R&D expenditures — 2 13 2 Expenses not deductible (including expenses accrued for share-based compensation amounting to RMB1,390, RMB (92) (reversed) and RMB5,487 for the years ended June 30, 2019, 2020 and 2021, respectively) (5,201) (5,621) (9,737) (1,471) Valuation allowance on deferred tax assets (6,529) (2,135) (3,259) (492) Income tax expense (38,013) (50,763) (88,094) (13,307) |
Schedule of deferred income tax liabilities and assets | Amount RMB Balance as of June 30, 2019 2,226 Increase during the year 1,667 Decrease due to amortization of intangible assets (17) Exchange translation adjustment 85 Balance as of June 30, 2020 3,961 Increase during the year — Decrease due to amortization of intangible assets (207) Exchange translation adjustment (206) Balance as of June 30, 2021 3,548 Amount in US$ 549 The Group’s deferred tax assets at June 30, 2020 and 2021 were as follows: As of June 30, 2020 2021 2021 RMB RMB US$ Tax loss carry forward 9,242 12,266 1,899 Contingent losses related to legal proceedings 2,259 325 50 Others 329 329 51 Less, valuation allowance (9,247) (12,271) (1,900) 2,583 649 100 |
Schedule of deferred tax assets valuation allowance | The Group’s deferred tax assets valuation allowance at June 30, 2021 and changes for the two years then ended were as follows: Amount RMB Balance as of June 30, 2019 20,520 Increase during the year 2,135 Decrease due to disposal of VIEs’ entities (13,771) Increase due to acquisition of VIEs’ entities 279 Exchange translation adjustment 84 Balance as of June 30, 2020 9,247 Increase during the year 3,259 Exchange translation adjustment (235) Balance as of June 30, 2021 12,271 Amount in US$ 1,900 |
Restricted Net Assets (Tables)
Restricted Net Assets (Tables) - Parent Company | 12 Months Ended |
Jun. 30, 2021 | |
Schedule of Balance Sheets | Balance Sheets (In thousands, except for share and per share data, or otherwise stated) As of June 30, 2020 2021 2021 (RMB) (RMB) (US$) Assets Investments in subsidiaries and VIEs 500,257 720,927 111,597 Total Assets 500,257 720,927 111,597 Liabilities and Equity Equity: Ordinary shares (US$0.0001 par value; authorized 500,000,000 shares; issued outstanding 34 36 6 Additional paid-in capital 500,581 503,050 77,870 Accumulated gain 5,903 213,560 33,058 Accumulated other comprehensive (loss)/income (6,261) 4,281 663 Total equity 500,257 720,927 111,597 Total Liabilities and Equity 500,257 720,927 111,597 |
Schedule of Statements of Operations | Statements of Operations (In thousands, except for share and per share data, or otherwise stated) Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Share of (loss)/income from subsidiaries and VIEs (88,540) 106,151 207,657 31,369 Net (loss)/income (88,540) 106,151 207,657 31,369 |
Schedule of Statements of Cash Flows | Statements of Cash Flows (In thousands, except for share and per share data, or otherwise stated) Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Cash flows from operating activities — — — — Investment in subsidiaries — — (180,677) (27,293) Cash flows from investing activities — — (180,677) (27,293) Proceeds from issuance of ordinary shares from IPO — — 180,677 27,293 Cash flows from financing activities — — 180,677 27,293 Effect of exchange rate changes — — — — Net change in cash and cash equivalents — — — — Cash and cash equivalents at beginning of the year — — — — Cash and cash equivalents at end of the year — — — — |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Concentration of Risk | |
Summary of customer concentrations | A B C D E F G H I J Year Ended June 30, 2021 Revenues, customer concentration risk 18 % 11 % * * * * * * — — Year Ended June 30, 2020 Revenues, customer concentration risk * — — — * 26 % 15 % 10 % * * Year Ended June 30, 2019 Revenues, customer concentration risk — — — — — — — — 16 % * As of June 30, 2021 (1) Accounts receivable (from third parties and related parties), customer concentration risk * * 18 % 16 % 14 % * — * — — As of June 30, 2020 (1) Accounts receivable (from third parties and related parties), customer concentration risk * — — — * 22 % 34 % * — — (1) The denominator for the calculation of accounts receivable, customer concentration risk was the total amount of accounts receivable from third parties and accounts receivable from related parties (as disclosed in Note 15 below) as of June 30, 2020 and 2021, respectively. * Less than 10%. - No transaction incurred for the reporting period/no balance existed as of the reporting date. |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Balances and Transactions | |
Schedule of significant related parties and their relationships with the Group | Name of the related parties Relation with the Group Hywin Financial Holding Group Co., Ltd. (“Hywin Financial Holding”) An entity ultimately controlled by Mr. HAN Hongwei Ms. WANG Dian Senior executive officer Ms. WANG Pei Spouse of Mr. HAN Hongwei Mr. HAN Wangjuncheng Son of Mr. HAN Hongwei Yushang Group Co., Ltd. a direct subsidiary of Hywin Financial Holding Shanghai Yushang Commodity International Trade Co., Ltd. an indirect subsidiary of Hywin Financial Holding Shanghai Youqiding Asset Management Co., Ltd. (dissolved in January 2020) an indirect subsidiary of Hywin Financial Holding Hywin Asset Management Co., Ltd. a direct subsidiary of Hywin Financial Holding Tibet Haiyinhui Network Technology Co., Ltd. (dissolved in June 2021) an entity ultimately controlled by Mr. HAN Hongwei Yinling Group Entities (related parties of the Company for the years ended June 30, 2019 and 2020): Entities controlled by Ms. WANG Dian Shanghai Yinling Industrial Co., Ltd. (Former Name: Yinling Finance Lease (Shanghai) Co., Ltd.) Shanghai Yinling Financial Information Service Co., Ltd. Shanghai Yinling Equity Investment Fund Co., Ltd. Shanghai Yinling Asset Management Co., Ltd. Shanghai Liuyi Industrial Co., Ltd. (Former Name: Shanghai Yinlin Commercial Factoring Co., Ltd.) Five Bulls Group Entities: Entities controlled by an immediate family member of Mr. HAN Hongwei Shanghai Five Bulls Asset Management Co., Ltd. Five Bulls International Holding Group Limited Five Bulls Holdings Limited Shenzhen Five Bulls Industrial Investment Co., Ltd. (Former name: Shenzhen Five Bulls Equity Investment Fund Management Co., Ltd.) Affiliated companies of Shenzhen Five Bulls Industrial Investment Co., Ltd. and Five Bulls Holdings Limited Real Estate Group Entities (related parties of the Company for the years ended June 30, 2019 and 2020): Entities controlled by an immediate family member of Mr. HAN Hongwei Shanghai Lanyun Real Estate Co., Ltd. Shanghai Danxiao Real Estate Co., Ltd. Shanghai Suxiao Real Estate Co., Ltd. Shanghai Yulan Real Estate Co., Ltd. Shanghai Yubi Real Estate Co., Ltd. Shanghai Biyu Real Estate Co., Ltd. |
Schedule of the related party balances | As of June 30, 2020 2021 2021 RMB RMB US$ Amount due from related parties Deposit and prepayment to related parties for office lease contracts: Real Estate Group Entities 2,248 — — Amounts lent to a related party (2) : Hywin Financial Holding Group Co., Ltd. (“Hywin Financial Holding”) 273,768 126,103 19,520 Due from a related party related to disposal of VIEs’ subsidiaries: Ms. WANG Pei (3) 45,756 — — Due from related parties total 321,772 126,103 19,520 Amount due to related parties Payable to related parties related to office lease contracts: Real Estate Group Entities (4) 34,726 — — 34,726 — — Loans borrowed from related parties, net (5) : Wang Dian 1,941 1,891 293 Han Yu 19 19 3 Yushang Group Co., Ltd. 7 328 52 Han Wangjuncheng 61 61 9 2,028 2,299 357 Dividend payable to a related party: Ms. Wang Dian 22,500 22,500 3,482 Due to related parties-total 59,254 24,799 3,839 For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Wealth management and asset management services revenues from related parties Yinling Group Entities 47,132 — — — Hywin Asset Management Co., Ltd. — 3,615 3,144 475 Five Bulls Group Entities 900 — — — 48,032 3,615 3,144 475 Rental expenses charged by related parties Real Estate Group Entities 28,399 32,268 — — 28,399 32,268 — — For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Service fee charged by a related party Consulting service fee charged by Shanghai Yinling Financial Information Service Co., Ltd. 277 — — — 277 — — — Net loans borrowed from/lent to related parties (5) Loan lent to a related party, net Hywin Financial Holding Group Co., Ltd. (1) 69,118 107,160 1,579 239 69,118 107,160 1,579 239 Collection of loans lent to related parties, net Shanghai Yushang Commodity International Trade Co. Ltd. — 40,000 — — Yushang Group Co., Ltd. — 334 — — Shanghai Youqiding Asset Management Co., Ltd. 2,229 4,771 — — 2,229 45,105 — — Loans borrowed from related parties, net Tibet Haiyinhui Network Technology Co., Ltd. 754 1,941 — — Wang Dian — 19 — — Yushang Group Co., Ltd. — 7 321 48 Han Wangjuncheng — 61 — — 754 2,028 321 48 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Schedule of operating lease commitment | Office Rental RMB US$ Year ending June 30, -2022 95,043 14,712 -2023 33,039 5,114 -2024 12,051 1,865 -2025 790 122 -2026 — — thereafter — — Total 140,923 21,813 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | |
Schedule of basic and diluted earnings per share | Years Ended June 30, 2019 2020 2021 2021 RMB RMB RMB US$ Numerators Net Income 61,460 106,151 207,657 31,369 Denominators Weighted average number of ordinary shares outstanding-basic 50,000,000 50,000,000 51,578,082 51,578,082 Weighted average number of ordinary shares outstanding- diluted 50,000,000 50,000,000 53,547,163 53,547,163 Weighted average number of ADS outstanding-basic 25,000,000 25,000,000 25,789,041 25,789,041 Weighted average number of ADS outstanding- diluted 25,000,000 25,000,000 26,773,582 26,773,582 Earnings per ordinary share – basic 1.23 2.12 4.03 0.61 Earnings per ordinary share- diluted 1.23 2.12 3.88 0.59 Earnings per ADS – basic 2.46 4.25 8.05 1.22 Earnings per ADS- diluted 2.46 4.25 7.76 1.17 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Compensation | |
Summary of the option activities | Weighted Average Weighted Remaining Average Number Contractual Exercise of options Life (Years) Price (RMB) Outstanding and exercisable, June 30, 2018 8,998,465 1.25 1.50 Granted/Vested — — — Forfeited — — — Exercised — — — Repurchased (1,495,995) 1.08 1.23 Outstanding and exercisable, June 30, 2019 7,502,470 0.25 1.55 Granted/Vested — — — Forfeited — — — Exercised — — — Replaced by 2019 Option plan as of September 30, 2019 (7,502,470) — 1.55 Outstanding and exercisable, June 30, 2020 — — — Recognition of options originally under 2018 Option Plan and replaced by 2019 Option plan as of March 26, 2021 750,247 1.11 16.43 Recognition of new options granted under 2019 Option plan as of March 26, 2021 1,499,753 2.00 — Forfeited (235,613) — 0.74 Exercised — — — Outstanding, June 30, 2021 2,014,387 1.48 5.29 Exercisable, June 30, 2021 — — — |
Schedule of key assumptions for determination of options | Options granted in 2016 As of June 30, As of June 30, As of September 30, 2018 2019 2019 (4) Risk-free interest rate (1) 3.29 % 2.61 % 2.75 % Dividend yield (2) 0 % 0 % 0 % Expected volatility (3) 35.4 % 47.4 % 49.1 % Year to maturity (4) 1.25 0.25 Nil Exercise Price (5) 1.23 1.23 1.23 Fair value per ordinary share (6) 1.55 3.13 2.43 Fair value per option (RMB) 0.45 1.91 1.20 Options granted in 2017 As of June 30, As of June 30, As of September 30, 2018 2019 2019 (4) Risk-free interest rate (1) 3.29 % 2.61 % 2.75 % Dividend yield (2) 0 % 0 % 0 % Expected volatility (3) 35.4 % 47.4 % 49.1 % Year to maturity (4) 1.25 0.25 Nil Exercise Price (5) 1.35 1.35 1.35 Fair value per ordinary share (6) 1.55 3.13 2.43 Fair value per option (RMB) 0.38 1.79 1.08 Options granted in 2018 As of June 30, As of June 30, As of September 30, 2018 2019 2019 (4) Risk-free interest rate (1) 3.29 % 2.61 % 2.75 % Dividend yield (2) 0 % 0 % 0 % Expected volatility (3) 35.4 % 47.4 % 49.1 % Year to maturity (4) 1.25 0.25 Nil Exercise Price (5) 1.83 1.83 1.83 Fair value per ordinary share (6) 1.55 3.13 2.43 Fair value per option (RMB) 0.17 1.32 0.60 As of September 30, Options granted in 2019 Option Plan 2019 (4) Risk-free interest rate (1) 2.75 % Dividend yield (2) 0 % Expected volatility (3) 49.1 % Year to maturity (4) Nil Exercise Price (5) 0 Fair value per ordinary share (6) 24.3 Fair value per option (RMB) 24.3 (1) The Group estimated the risk-free interest rate based on the yield of China Benchmark Bond with a maturity period close to the expected term of the options. (2) Dividend yield is based on the fact that the Group does not expect to pay any cash dividends in the foreseeable future. (3) The computation of expected volatility is based on the fluctuation of the historical share prices of comparable companies. When selecting the comparable companies whose stock prices had been used by the Group to determine its expected share price volatility, the selection criteria primarily included: i) companies which are primarily engaged in wealth management and asset management related businesses; ii) companies that have its primary operations in Greater China; and iii) relevant companies’ information is both available and publicly disclosed. (4) The maturity date of the options is assumed to be on September 30, 2019, as a new option plan, i.e. the 2019 Option Plan was adopted to replace the 2018 Option Plan on such date. (5) Exercise prices are the contract exercise prices of the options. (6) Fair value of the underlying ordinary shares is estimated by the Group using guideline publicly-traded comparable method under market approach with reference to the stock price of the comparable publicly-traded companies. In addition, the Group also considered various other factors that the Group believed to be reasonable under the circumstances, including its results of operations, financials position, external market conditions affecting the wealth management service industry, trends within the wealth management and assets management services industry etc. |
Organization (Details)
Organization (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Hywin Wealth Global Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Hywin Wealth International Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Hywin Enterprise Management Consulting (Shanghai) Co., Ltd. | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Hywin Wealth Management Co., Ltd. | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Shanghai Hywin Network Technology Co., Ltd. | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Shenzhen Panying Asset Management Co., Ltd. | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Hywin Fund Distribution Co., Ltd. | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Shanghai Ziji Information Technology Co., Ltd. | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Haiyin Wealth Management (Hong Kong) Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Haiyin Insurance (Hong Kong) Co., Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Hywin International Insurance Broker Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Haiyin International Asset Management Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Hywin Asset Management (Hong Kong) Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Organization - Additional infor
Organization - Additional information (Details) - ADS - IPO | Mar. 26, 2021$ / sharesshares |
Number of American depository shares issued | 3,000,000 |
Shares Issued, Price Per Share | $ / shares | $ 10 |
Number of ordinary shares per ADS | 2 |
Variable Interest Entities (Det
Variable Interest Entities (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Exclusive Technical Consultation and Service Agreements | |
Variable Interest Entity [Line Items] | |
Fee as a percentage of consolidated net income | 100.00% |
Term of agreement | 20 years |
Voting Right Proxy and Financial Support Agreements | |
Variable Interest Entity [Line Items] | |
Fee as a percentage of consolidated net income | 100.00% |
Term of agreement | 20 years |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Financial Statements (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | Jun. 30, 2021USD ($) | |
Variable Interest Entity [Line Items] | |||||
Total Assets | ¥ 1,530,419 | ¥ 1,025,231 | $ 236,903 | ||
Total liabilities | 809,492 | 524,974 | 125,306 | ||
Net revenues | 1,834,422 | $ 277,107 | 1,284,863 | ¥ 1,146,612 | |
Net Income | 207,657 | 31,369 | 106,151 | 61,460 | |
Cash flow provided by operating activities | 334,033 | 50,458 | 133,210 | 137,750 | |
Cash flow used in investing activities | (14,631) | (2,210) | (43,439) | (95,128) | |
Cash flow provided by/(used in) financing activities | 185,606 | 28,038 | (5,709) | 14,180 | |
Variable interest entity | |||||
Variable Interest Entity [Line Items] | |||||
Total Assets | 1,349,713 | 1,025,231 | 208,931 | ||
Total liabilities | 799,410 | 524,974 | $ 123,746 | ||
Net revenues | 1,834,422 | 277,107 | 1,284,863 | 1,146,612 | |
Net Income | 207,662 | 31,369 | 106,151 | 61,460 | |
Cash flow provided by operating activities | 334,038 | 50,460 | 133,210 | 137,750 | |
Cash flow used in investing activities | (14,631) | (2,210) | (43,439) | (95,128) | |
Cash flow provided by/(used in) financing activities | ¥ 4,895 | $ 739 | ¥ (5,709) | ¥ 14,180 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | Jun. 30, 2021$ / ¥ |
Foreign currency translation and transactions | |
Exchange rate for balance sheet items, except equity | 6.4601 |
Exchange rate for items in the statement of operation and comprehensive income, and statement of cash flow | 6.6199 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounts receivable (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | ¥ 594,061 | $ 91,958 | ¥ 403,693 | $ 57,023 | ¥ 290,352 | $ 42,235 |
Less than 3 months | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | 466,082 | 72,148 | 345,838 | |||
More than 3 months and less than 1 year | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | ¥ 127,979 | $ 19,810 | ¥ 57,855 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Roll forward schedule of accounts receivable (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Roll forward schedule of accounts receivable | |||||
Balance at the beginning | ¥ 403,693 | $ 57,023 | ¥ 290,352 | $ 42,235 | |
Revenue (including VAT) | 1,940,407 | 298,117 | 1,352,898 | 191,101 | |
Collection | (1,750,039) | (263,182) | (1,239,557) | (176,313) | |
Balance at the end | 594,061 | $ 91,958 | 403,693 | $ 57,023 | |
Allowances for doubtful accounts | ¥ 0 | ¥ 0 | ¥ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property and equipment, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Loss from disposal of furniture, fixture and equipment | ¥ (81) | $ (12) | ¥ (1,453) | ¥ (12) |
Motor vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 5 years | 5 years | ||
Office equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 5 years | 5 years | ||
Electronic devices | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 3 years | 3 years | ||
Electronic devices | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 5 years | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Intangible assets, net (Details) - Software | 12 Months Ended |
Jun. 30, 2021 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Impairment of long-lived assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Impairment of long-lived assets | |||
Impairment recognized on long-lived assets | ¥ 0 | ¥ 0 | ¥ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Shenzhen Panying Asset Management Co., Ltd (Details) - Sep. 29, 2019 - Shenzhen Panying Asset Management Co., Ltd ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | USD ($) |
Business Acquisition [Line Items] | |||
Cash consideration | ¥ 1,900 | $ 268 | |
Acquired intangible assets: | |||
--PRC private investment fund manager certificate | 2,533 | $ 357 | |
--Related deferred tax liability | (633) | (89) | |
Total cash consideration paid | ¥ 1,900 | $ 268 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Shanghai Ziji Information Technology Co., Ltd (Details) - Shanghai Ziji Information Technology Co., Ltd ¥ in Thousands, $ in Thousands | May 11, 2020CNY (¥) | May 11, 2020USD ($) |
Business Acquisition [Line Items] | ||
Equity interest acquired | 100.00% | 100.00% |
Cash consideration | ¥ 6,300 | |
Allocation of purchase price to the major classes of assets and liabilities acquired | ||
Cash and cash equivalents | 15,200 | $ 2,147 |
Other current assets | 2,200 | 311 |
Other current liabilities | (14,200) | (2,005) |
Acquired intangible assets: | ||
--Software | 4,133 | 584 |
--Related deferred tax liability | (1,033) | (147) |
Total cash consideration paid | ¥ 6,300 | $ 890 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Disposal of VIE's subsidiaries to entities under common control (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |||
Gain or loss on disposal of subsidiaries | ¥ 0 | ¥ 0 | ¥ 0 |
Disposal of VIE's subsidiaries to entities under common control | ¥ 5,205 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Insurance brokerage service (Details) - HKD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue subject to clawback provision | $ 200 | $ 1,000 | $ 30 |
Minimum | |||
Commission payment term | 6 days | ||
Maximum | |||
Commission payment term | 26 days |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Revenue recognition - Others (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | ¥ 1,834,422 | $ 277,107 | ¥ 1,284,863 | ¥ 1,146,612 |
Revenues recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,820,802 | 1,280,243 | 1,135,811 | |
Revenues recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 13,620 | 4,620 | 10,801 | |
Wealth management | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,720,500 | 259,898 | 1,183,468 | 1,062,420 |
Wealth management | Revenues recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,720,500 | 1,183,468 | 1,062,420 | |
Insurance brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 75,052 | 11,337 | 90,966 | 71,969 |
Insurance brokerage | Revenues recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 75,052 | 90,966 | 71,969 | |
Assets management | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 14,942 | 2,257 | 4,620 | 12,223 |
Assets management | Revenues recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,322 | 1,422 | ||
Assets management | Revenues recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 13,620 | 4,620 | ¥ 10,801 | |
Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 23,928 | $ 3,615 | 5,809 | |
Others | Revenues recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | ¥ 23,928 | ¥ 5,809 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021CNY (¥)segment | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | |
Summary of Significant Accounting Policies | |||
Maximum amount of underpayment tax | ¥ | ¥ 100,000 | ||
Number of reportable operating segments | segment | 1 | ||
Contingent liabilities | ¥ 1,300 | $ 201 | ¥ 9,037 |
Deposits, Prepayments and Oth_3
Deposits, Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Deposits, Prepayments and Other Current Assets | |||
Deposits for office spaces leases | ¥ 26,055 | $ 4,034 | ¥ 26,351 |
Prepaid rental and property management fee | 16,025 | 2,481 | 11,351 |
Prepaid listing fee | 3,973 | ||
Other current assets | 9,460 | 1,464 | 1,776 |
Deposits, prepayments and other current assets | ¥ 51,540 | $ 7,979 | ¥ 43,451 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | ¥ 183,478 | ¥ 181,309 | $ 28,402 |
Less: accumulated depreciation | (162,374) | (147,193) | (25,135) |
Property and equipment, net | 21,104 | 34,116 | 3,267 |
Depreciation | 18,715 | 23,617 | |
Impairment loss | 0 | 0 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 115,352 | 114,143 | 17,856 |
Electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 44,322 | 42,526 | 6,861 |
Furniture, fixtures and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 21,271 | 21,834 | 3,293 |
Motor vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | ¥ 2,533 | ¥ 2,806 | $ 392 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, cost | ¥ 38,124 | ¥ 36,478 | $ 5,901 |
Less: accumulated amortization | (13,899) | (7,055) | (2,151) |
Intangible Assets, Net (Excluding Goodwill), Total | 24,225 | 29,423 | 3,750 |
Amortization expenses | 6,879 | 2,589 | |
Impairment of Intangible assets | 0 | 0 | |
Computer software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, cost | 22,829 | 19,936 | 3,534 |
Licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, cost | ¥ 15,295 | ¥ 16,542 | $ 2,367 |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Other Payables and Accrued Liabilities | |||
Value added tax and other taxes payable | ¥ 170,079 | $ 26,327 | ¥ 80,098 |
Accrued payroll | 59,644 | 9,233 | 38,821 |
Service fee payable (1) | 7,458 | 1,154 | 13,639 |
Payables related to office rental and property management fee | 26,968 | 4,175 | 10,308 |
Contingent liabilities related to legal proceedings (2) | 1,300 | 201 | 9,037 |
Equity purchase payable (3) | 3,990 | 618 | 6,300 |
Other current liabilities | 9,258 | 1,434 | 10,684 |
Other payables and accrued liabilities | ¥ 278,697 | $ 43,142 | ¥ 168,887 |
Other Payables and Accrued Li_4
Other Payables and Accrued Liabilities - Narrative (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021CNY (¥)item | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | |
Other Payables and Accrued Liabilities | |||
Number of civil proceedings | 1 | ||
Number of individual investors prosecuted the entity | 3 | ||
Contingent liabilities | ¥ 1,300 | $ 201 | ¥ 9,037 |
Income Taxes (Details)
Income Taxes (Details) - HKD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax and Tax Rate [Line Items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
Hong Kong | |||
Income Tax and Tax Rate [Line Items] | |||
Income tax rate | 16.50% | ||
Preferential income tax rate | 8.25% | ||
Assessable profits threshold for preferential income tax rate | $ 2 | ||
Mainland | |||
Income Tax and Tax Rate [Line Items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
Preferential income tax rate | 15.00% |
Income Taxes - PRC subsidiaries
Income Taxes - PRC subsidiaries (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Income Taxes | ||||
Current | ¥ 86,367 | $ 13,046 | ¥ (51,512) | ¥ (38,801) |
Deferred | (1,727) | (261) | 749 | 788 |
Income tax expense | ¥ (88,094) | $ (13,307) | ¥ (50,763) | ¥ (38,013) |
Income Taxes - PRC statutory in
Income Taxes - PRC statutory income tax rate (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Income Taxes | ||||
Income before income tax expense | ¥ 295,751 | $ 44,676 | ¥ 156,914 | ¥ 99,473 |
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax at PRC statutory income tax rate | ¥ (73,938) | $ (11,169) | ¥ (39,229) | ¥ (24,868) |
Impact of different tax rates in other jurisdictions | (1,100) | (166) | (3,823) | (1,558) |
Preferential tax treatments and tax holiday effects | (73) | (11) | 43 | 143 |
Super deduction of qualified R&D expenditures | 13 | 2 | 2 | |
Expenses not deductible | (9,737) | (1,471) | (5,621) | (5,201) |
Valuation allowance on deferred tax assets | (3,259) | (492) | (2,135) | (6,529) |
Income tax expense | (88,094) | $ (13,307) | (50,763) | (38,013) |
Expenses accrued (reversal) for share-based compensation | ¥ 5,487 | ¥ (92) | ¥ 1,390 |
Income Taxes - Group's deferred
Income Taxes - Group's deferred tax liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | |
Income Taxes | |||
Beginning balance | ¥ 3,961 | ¥ 2,226 | |
Increase during the year | 1,667 | ||
Decrease due to amortization of intangible assets | (207) | (17) | |
Exchange translation adjustment | (206) | 85 | |
Ending balance | ¥ 3,548 | $ 549 | ¥ 3,961 |
Income Taxes - Group's deferr_2
Income Taxes - Group's deferred tax assets (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) |
Income Taxes | ||||
Tax loss carry forward | ¥ 12,266 | $ 1,899 | ¥ 9,242 | |
Contingent losses related to legal proceedings | 325 | 50 | 2,259 | |
Others | 329 | 51 | 329 | |
Less, valuation allowance | (12,271) | (1,900) | (9,247) | ¥ (20,520) |
Deferred tax assets, net | ¥ 649 | $ 100 | ¥ 2,583 |
Income Taxes - Group's deferr_3
Income Taxes - Group's deferred tax assets valuation allowance (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | |
Income Taxes | |||
Beginning balance | ¥ 9,247 | ¥ 20,520 | |
Increase during the year | 3,259 | 2,135 | |
Decrease due to disposal of VIEs' entities | (13,771) | ||
Increase due to acquisition of VIEs' entities | 279 | ||
Exchange translation adjustment | (235) | 84 | |
Ending balance | ¥ 12,271 | $ 1,900 | ¥ 9,247 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax and Tax Rate [Line Items] | ||
Valuation allowance | ¥ 3,259 | ¥ 2,135 |
Valuation allowance in a net amount | ¥ 3,259 | (11,357) |
Withholding tax rate | 10.00% | |
Mainland | ||
Income Tax and Tax Rate [Line Items] | ||
Net operating loss carryforwards | ¥ 41,871 | 26,049 |
Hong Kong | ||
Income Tax and Tax Rate [Line Items] | ||
Net operating loss carryforwards | ¥ 12,198 | ¥ 16,804 |
Ordinary Shares (Details)
Ordinary Shares (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Mar. 26, 2021$ / sharesshares | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2020USD ($)$ / sharesshares | Aug. 27, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($) |
Ordinary shares, share capital authorized | $ | $ 50 | ||||||
Ordinary shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Ordinary shares, issued shares | 56,000,000 | 56,000,000 | 50,000,000 | 50,000,000 | |||
Ordinary shares (US$0.0001 par value; authorized 500,000,000 shares; issued and outstanding 50,000,000 and 56,000,000 shares as of June 30, 2020 and 2021, respectively) | ¥ 36 | $ 6 | ¥ 34 | $ 5 | $ 5 | ||
ADS | |||||||
Number of ordinary shares per ADS | 2 | ||||||
Pro-rata | |||||||
Ordinary shares, authorized | 50,000,000 | ||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||||||
Ordinary shares (US$0.0001 par value; authorized 500,000,000 shares; issued and outstanding 50,000,000 and 56,000,000 shares as of June 30, 2020 and 2021, respectively) | $ | $ 5 | ||||||
IPO | ADS | |||||||
Issuance of shares through IPO (in shares) | 3,000,000 | ||||||
ADS price per share | $ / shares | $ 10 |
Profit Distribution (Details)
Profit Distribution (Details) - Hywin Wealth Management Co., Ltd. - CNY (¥) ¥ in Thousands | May 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 |
Profit Distribution [Line Items] | |||
Dividends declared | ¥ 150,000 | ¥ 0 | ¥ 0 |
Percentage of equity interest held | 100.00% | ||
Hywin Financial Holding Group Co., Ltd. | |||
Profit Distribution [Line Items] | |||
Dividends payable | ¥ 127,500 | ||
Percentage of equity interest held | 85.00% | ||
Ms. Wang Dian | |||
Profit Distribution [Line Items] | |||
Dividends payable | ¥ 22,500 | ||
Percentage of equity interest held | 15.00% |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Restricted Net Assets | ||
Minimum percentage of after-tax profit transferred by VIEs to general statutory reserve fund | 10.00% | |
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund | 50.00% | |
Minimum percentage of after-tax profit transferred by domestic enterprise to statutory reserve fund | 10.00% | |
Maximum percentage criteria for in appropriation of after-tax profit by domestic enterprise to certain statutory reserve funds | 50.00% | |
Net assets subject to restriction | ¥ 409,838 | ¥ 552,959 |
Restricted Net Assets - Balance
Restricted Net Assets - Balance Sheets (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2020USD ($)$ / sharesshares | Aug. 27, 2019$ / sharesshares | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) | Jun. 30, 2018CNY (¥) |
Assets | ||||||||
Total Assets | ¥ 1,530,419 | $ 236,903 | ¥ 1,025,231 | |||||
Equity: | ||||||||
Ordinary shares (US$0.0001 par value; authorized 500,000,000 shares; issued and outstanding 50,000,000 and 56,000,000 shares as of June 30, 2020 and 2021, respectively) | 36 | 6 | 34 | $ 5 | $ 5 | |||
Additional paid-in capital | 503,050 | 77,870 | 500,581 | |||||
Accumulated gain | 135,597 | 20,990 | (47,056) | |||||
Accumulated other comprehensive (loss)/income | 4,281 | 663 | (6,261) | |||||
Total equity | 720,927 | 111,597 | 500,257 | ¥ 391,187 | ¥ 487,645 | |||
Total Liabilities and Equity | ¥ 1,530,419 | $ 236,903 | ¥ 1,025,231 | |||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||
Ordinary shares, issued shares | 56,000,000 | 56,000,000 | 50,000,000 | 50,000,000 | ||||
Ordinary shares, outstanding shares | 56,000,000 | 56,000,000 | 50,000,000 | 50,000,000 | ||||
Parent Company | ||||||||
Assets | ||||||||
Investments in subsidiaries and VIEs | ¥ 720,927 | $ 111,597 | ¥ 500,257 | |||||
Total Assets | 720,927 | 111,597 | 500,257 | |||||
Equity: | ||||||||
Ordinary shares (US$0.0001 par value; authorized 500,000,000 shares; issued and outstanding 50,000,000 and 56,000,000 shares as of June 30, 2020 and 2021, respectively) | 36 | 6 | 34 | |||||
Additional paid-in capital | 503,050 | 77,870 | 500,581 | |||||
Accumulated gain | 213,560 | 33,058 | 5,903 | |||||
Accumulated other comprehensive (loss)/income | 4,281 | 663 | (6,261) | |||||
Total equity | 720,927 | 111,597 | 500,257 | |||||
Total Liabilities and Equity | ¥ 720,927 | $ 111,597 | ¥ 500,257 | |||||
Ordinary shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Ordinary shares, issued shares | 56,000,000 | 56,000,000 | 50,000,000 | 50,000,000 | ||||
Ordinary shares, outstanding shares | 56,000,000 | 56,000,000 | 50,000,000 | 50,000,000 |
Restricted Net Assets - Stateme
Restricted Net Assets - Statements of Operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
Net (loss)/income | ¥ 207,657 | $ 31,369 | ¥ 106,151 | ¥ 61,460 |
Parent Company | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Share of (loss)/income from subsidiaries and VIEs | 207,657 | 31,369 | 106,151 | (88,540) |
Net (loss)/income | ¥ 207,657 | $ 31,369 | ¥ 106,151 | ¥ (88,540) |
Restricted Net Assets - State_2
Restricted Net Assets - Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Cash flows from operating activities | ¥ 334,033 | $ 50,458 | ¥ 133,210 | ¥ 137,750 | |
Cash flows from investing activities | (14,631) | (2,210) | (43,439) | (95,128) | |
Proceeds from issuance of ordinary shares from IPO | 180,677 | 27,293 | |||
Cash flows from financing activities | 185,606 | 28,038 | (5,709) | 14,180 | |
Effect of exchange rate changes | 11,917 | 3,732 | (4,420) | (3,145) | |
Net change in cash and cash equivalents | 516,925 | 80,018 | 79,642 | 53,657 | |
Cash, cash equivalents, and restricted cash at beginning of the year | 188,385 | 29,161 | 108,743 | 55,086 | |
Cash, cash equivalents, and restricted cash at end of the year | 705,310 | $ 109,179 | 188,385 | $ 29,161 | ¥ 108,743 |
Parent Company | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Cash flows from operating activities | 0 | ||||
Investment in subsidiaries | (180,677) | (27,293) | |||
Cash flows from investing activities | (180,677) | (27,293) | |||
Proceeds from issuance of ordinary shares from IPO | 180,677 | 27,293 | |||
Cash flows from financing activities | 180,677 | $ 27,293 | |||
Effect of exchange rate changes | 0 | ||||
Net change in cash and cash equivalents | 0 | ||||
Cash, cash equivalents, and restricted cash at beginning of the year | 0 | ||||
Cash, cash equivalents, and restricted cash at end of the year | ¥ 0 | ¥ 0 |
Employee Defined Contribution_2
Employee Defined Contribution Plan (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Defined Contribution Plan | |||
Employee benefit expenses | ¥ 47,362 | ¥ 51,000 | ¥ 58,206 |
Concentration of Risk (Details)
Concentration of Risk (Details) - Customer concentrations | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 18.00% | ||
Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 11.00% | ||
Revenue | Customer F | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 26.00% | ||
Revenue | Customer G | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 15.00% | ||
Revenue | Customer H | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 10.00% | ||
Revenue | Customer I | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 16.00% | ||
Accounts receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 18.00% | ||
Accounts receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 16.00% | ||
Accounts receivable | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 14.00% | ||
Accounts receivable | Customer F | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 22.00% | ||
Accounts receivable | Customer G | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 34.00% |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Related Party Transaction [Line Items] | |||
Due from related parties | ¥ 126,103 | $ 19,520 | ¥ 321,772 |
Due to related parties | 24,799 | 3,839 | 59,254 |
Office lease contracts | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 34,726 | ||
Office lease contracts | Real Estate Group Entities | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 2,248 | ||
Due to related parties | 34,726 | ||
Amounts lent | Hywin Financial Holding Group Co., Ltd. | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 126,103 | 19,520 | 273,768 |
Disposal of VIEs' subsidiaries | Ms. . WANG Pei | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 45,756 | ||
Loans borrowed | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 2,299 | 357 | 2,028 |
Loans borrowed | Yushang Group Co., , Ltd. | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 328 | 52 | 7 |
Loans borrowed | Ms. Wang Dian | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,891 | 293 | 1,941 |
Loans borrowed | Han Yu | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 19 | 3 | 19 |
Loans borrowed | Han Wangjuncheng | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 61 | 9 | 61 |
Dividend payable | Ms. Wang Dian | |||
Related Party Transaction [Line Items] | |||
Due to related parties | ¥ 22,500 | $ 3,482 | ¥ 22,500 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Summarized by nature (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Collection of loans lent to related parties, net | ¥ 45,105 | ¥ 2,229 | ||
Repayment of loans borrowed from related parties, net | 754 | |||
Wealth management and asset management services | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | ¥ 3,144 | $ 475 | 3,615 | 48,032 |
Rental expenses | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 32,268 | 28,399 | ||
Technical service fee | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 277 | |||
Loans borrowed from/lent to related parties | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 1,579 | 239 | 107,160 | 69,118 |
Collection of loans lent to related parties | ||||
Related Party Transaction [Line Items] | ||||
Collection of loans lent to related parties, net | 45,105 | 2,229 | ||
Loans borrowed from related parties | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 321 | 48 | 2,028 | 754 |
Yinling Group Entities | Wealth management and asset management services | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 47,132 | |||
Hywin Asset Management Co., , Ltd. | Wealth management and asset management services | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 3,144 | 475 | 3,615 | |
Five Bulls Group Entities | Wealth management and asset management services | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 900 | |||
Yushang Group Co., , Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Collection of loans lent to related parties, net | 334 | |||
Yushang Group Co., , Ltd. | Loans borrowed from related parties | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 321 | 48 | 7 | |
Real Estate Group Entities | Rental expenses | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 32,268 | 28,399 | ||
Hywin Financial Holding Group Co., Ltd. | Loans borrowed from/lent to related parties | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | ¥ 1,579 | $ 239 | 107,160 | 69,118 |
Shanghai Yinling Financial Information Service Co., Ltd. | Consulting service fee | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 277 | |||
Shanghai Yushang Commodity International Trade Co., , Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Collection of loans lent to related parties, net | 40,000 | |||
Shanghai Youqiding Asset Management Co., , Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Collection of loans lent to related parties, net | 4,771 | 2,229 | ||
Tibet Haiyinhui Network Technology Co., Ltd. | Loans borrowed from related parties | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 1,941 | ¥ 754 | ||
Ms. Wang Dian | Loans borrowed from related parties | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | 19 | |||
Han Wangjuncheng | Loans borrowed from related parties | ||||
Related Party Transaction [Line Items] | ||||
Amount of transaction | ¥ 61 |
Related Party Balances and Tr_5
Related Party Balances and Transactions - Disposal (Details) ¥ in Thousands, $ in Thousands | Aug. 28, 2020CNY (¥) | Jun. 30, 2019 | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) |
Related Party Transaction [Line Items] | ||||
Capital reduction approved to offset the receivable balance due from Hywin Financial Holdingg Group | ¥ 195,000 | $ 29,457 | ||
Hywin Financial Holding Group Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Capital reduction approved to offset the receivable balance due from Hywin Financial Holdingg Group | ¥ 165,750 | |||
Ms. Wang Dian | ||||
Related Party Transaction [Line Items] | ||||
Capital reduction approved to offset the receivable balance due from Hywin Financial Holdingg Group | 29,250 | |||
Hywin Wealth Management Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Percentage of disposal of equity interest in subsidiary | 15.00% | |||
Capital reduction approved to offset the receivable balance due from Hywin Financial Holdingg Group | ¥ 195,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | |
Rental expenses under operating leases | ¥ 125,828 | ¥ 125,603 | ||||
Contingent liabilities | ¥ 1,300 | $ 201 | ¥ 9,037 | |||
Operating lease commitment | ||||||
2022 | 95,043 | 14,712 | ||||
2023 | 33,039 | 5,114 | ||||
2024 | 12,051 | 1,865 | ||||
2025 | 790 | 122 | ||||
Total | ¥ 140,923 | $ 21,813 | ||||
Forecast | ||||||
Rental expenses under operating leases | ¥ 111,432 |
Earnings Per Share (Details)
Earnings Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | |
Numerators | ||||
Net Income | ¥ 207,657 | $ 31,369 | ¥ 106,151 | ¥ 61,460 |
Ordinary shares | ||||
Denominators | ||||
Weighted average number of shares outstanding-basic | 51,578,082 | 51,578,082 | 50,000,000 | 50,000,000 |
Weighted average number of shares outstanding- diluted | 53,547,163 | 53,547,163 | 50,000,000 | 50,000,000 |
Earnings per share - basic | (per share) | ¥ 4.03 | $ 0.61 | ¥ 2.12 | ¥ 1.23 |
Earnings Per Share, Diluted | (per share) | ¥ 3.88 | $ 0.59 | ¥ 2.12 | ¥ 1.23 |
ADS | ||||
Denominators | ||||
Weighted average number of shares outstanding-basic | 25,789,041 | 25,789,041 | 25,000,000 | 25,000,000 |
Weighted average number of shares outstanding- diluted | 26,773,582 | 26,773,582 | 25,000,000 | 25,000,000 |
Earnings per share - basic | (per share) | ¥ 8.05 | $ 1.22 | ¥ 4.25 | ¥ 2.46 |
Earnings Per Share, Diluted | (per share) | ¥ 7.76 | $ 1.17 | ¥ 4.25 | ¥ 2.46 |
Share-based Compensation (Detai
Share-based Compensation (Details) ¥ / shares in Units, ¥ in Thousands | Mar. 26, 2021$ / sharesshares | Sep. 30, 2019CNY (¥)$ / sharesshares | Jan. 08, 2018¥ / sharesshares | Jan. 08, 2018$ / sharesshares | Jan. 01, 2017¥ / sharesshares | Jan. 01, 2017$ / sharesshares | Jan. 01, 2016¥ / sharesshares | Jan. 01, 2016$ / sharesshares | Jun. 30, 2021shares | Jun. 30, 2020shares | Jun. 30, 2019shares |
2018 Option Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options issued | 750,247 | 0 | 0 | ||||||||
Share options, exercise price | $ / shares | $ 16.43 | ||||||||||
Share-based compensation liabilities | ¥ | ¥ 6,560 | ||||||||||
2018 Option Plan | Hywin Wealth Management Co., Ltd. | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options issued | 8,998,465 | 8,998,465 | 8,998,465 | 8,998,465 | 8,998,465 | 8,998,465 | |||||
Share options, exercise price | ¥ / shares | ¥ 1.83 | ¥ 1.35 | ¥ 1.23 | ||||||||
2019 Option Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options issued | 1,499,753 | 2,250,000 | |||||||||
Threshold period for exercise of options after the IPO | 5 years | ||||||||||
Requisite service period | 1 year | 5 years | |||||||||
Exercisable options (in shares) | 0 | ||||||||||
2019 Option Plan | Hywin Wealth Management Co., Ltd. | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options issued | 1,499,753 | ||||||||||
Share options, exercise price | $ / shares | ¥ 0 | $ 2.801 | $ 1.946 | $ 1.894 | |||||||
Maximum number of ordinary shares available for issuance | 2,250,000 | ||||||||||
Number of Hywin Wealth Management.'s options replaced with each option under the Company's plan | 10 | ||||||||||
Threshold period for exercise of options after the IPO | 1 year |
Share-based Compensation - Weig
Share-based Compensation - Weighted Average (Details) | Mar. 26, 2021$ / sharesshares | Sep. 30, 2019$ / sharesshares | Jun. 30, 2020 | Jun. 30, 2021$ / sharesshares | Jun. 30, 2020$ / sharesshares | Jun. 30, 2019$ / sharesshares | Jun. 30, 2018$ / sharesshares |
2018 Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||
Outstanding and exercisable, beginning | 7,502,470 | 7,502,470 | 8,998,465 | ||||
Granted/Vested | 750,247 | 0 | 0 | ||||
Forfeited | (235,613) | ||||||
Repurchased | (1,495,995) | ||||||
Outstanding and exercisable, Ending | 2,014,387 | 7,502,470 | 8,998,465 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Weighted Average Remaining Contractual Life, outstanding and exercisable | 1 year 5 months 23 days | 3 months | 1 year 3 months | ||||
Weighted Average Remaining Contractual Life, Granted/Vested | 1 year 1 month 9 days | 0 years | 0 years | ||||
Weighted Average Remaining Contractual Life, repurchased | 1 year 29 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||||
Weighted Average Exercise Price, outstanding and exercisable beginning | $ / shares | $ 1.55 | $ 1.55 | $ 1.50 | ||||
Weighted Average Exercise Price, granted/vested | $ / shares | $ 16.43 | ||||||
Weighted Average Exercise Price, forfeited | $ / shares | $ 0.74 | ||||||
Weighted Average Exercise Price, Repurchased | $ / shares | 1.23 | ||||||
Weighted Average Exercise Price, outstanding and exercisable ending | $ / shares | $ 5.29 | $ 1.55 | $ 1.50 | ||||
2019 Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||
Granted/Vested | 1,499,753 | 2,250,000 | |||||
Forfeited | (235,613) | ||||||
Replaced by 2019 Option plan | (7,502,470) | ||||||
Exercisable, Ending | 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Weighted Average Remaining Contractual Life, outstanding and exercisable | 0 years | ||||||
Weighted Average Remaining Contractual Life, Granted/Vested | 2 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||||
Weighted Average Exercise Price, Replaced | $ / shares | 1.55 |
Share-based Compensation - Opti
Share-based Compensation - Options granted (Details) | Sep. 30, 2019$ / shares | Jun. 30, 2019$ / shares | Jun. 30, 2018$ / shares | Sep. 30, 2019¥ / shares | Jun. 30, 2019¥ / shares | Jun. 30, 2018¥ / shares |
2016 Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk-free interest rate (1) | 2.75% | 2.61% | 3.29% | |||
Dividend yield (2) | 0.00% | 0.00% | 0.00% | |||
Expected volatility (3) | 49.10% | 47.40% | 35.40% | |||
Year to maturity (4) | $ / shares | $ 0 | $ 0.25 | $ 1.25 | |||
Exercise Price (5) (RMB) | ¥ 1.23 | ¥ 1.23 | ¥ 1.23 | |||
Fair value per ordinary share (6) (RMB) | 2.43 | 3.13 | 1.55 | |||
Fair value per option (RMB) | 1.20 | 1.91 | 0.45 | |||
2017 Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk-free interest rate (1) | 2.75% | 2.61% | 3.29% | |||
Dividend yield (2) | 0.00% | 0.00% | 0.00% | |||
Expected volatility (3) | 49.10% | 47.40% | 35.40% | |||
Year to maturity (4) | $ / shares | $ 0 | $ 0.25 | $ 1.25 | |||
Exercise Price (5) (RMB) | 1.35 | 1.35 | 1.35 | |||
Fair value per ordinary share (6) (RMB) | 2.43 | 3.13 | 1.55 | |||
Fair value per option (RMB) | 1.08 | 1.79 | 0.38 | |||
2018 Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk-free interest rate (1) | 2.75% | 2.61% | 3.29% | |||
Dividend yield (2) | 0.00% | 0.00% | 0.00% | |||
Expected volatility (3) | 49.10% | 47.40% | 35.40% | |||
Year to maturity (4) | $ / shares | $ 0 | $ 0.25 | $ 1.25 | |||
Exercise Price (5) (RMB) | 1.83 | 1.83 | 1.83 | |||
Fair value per ordinary share (6) (RMB) | 2.43 | 3.13 | 1.55 | |||
Fair value per option (RMB) | 0.60 | ¥ 1.32 | ¥ 0.17 | |||
2019 Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk-free interest rate (1) | 2.75% | |||||
Dividend yield (2) | 0.00% | |||||
Expected volatility (3) | 49.10% | |||||
Year to maturity (4) | $ / shares | $ 0 | |||||
Exercise Price (5) (RMB) | 0 | |||||
Fair value per ordinary share (6) (RMB) | 24.3 | |||||
Fair value per option (RMB) | ¥ 24.3 |
Share-based Compensation - Op_2
Share-based Compensation - Options (Details) - CNY (¥) ¥ in Thousands | Mar. 26, 2021 | Aug. 31, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
2018 Option Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options issued | 750,247 | 0 | 0 | ||
Granted/Vested | 750,247 | 0 | 0 | ||
Forfeited | 235,613 | ||||
Share-based compensation expenses/(benefits) | ¥ 369 | ¥ 5,558 | |||
2019 Option Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options issued | 1,499,753 | 2,250,000 | |||
Share-based compensation expenses | ¥ 21,947 | ||||
Granted/Vested | 1,499,753 | 2,250,000 | |||
Forfeited | 235,613 | ||||
Hywin Wealth Management Co., Ltd. | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options repurchased | 1,495,995 | ||||
Decrease in share-based compensation liabilities | ¥ 674 |
Share-based Compensation - Fair
Share-based Compensation - Fair value measurement (Details) - CNY (¥) | Jun. 30, 2021 | Jun. 30, 2020 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Share-based compensation liabilities | ¥ 0 | ¥ 0 |