|
3.
|
Discontinued operations
|
On August 14, 2024, the Company exited its businesses in overseas wealth management and asset management and disposed of certain subsidiaries in Hong Kong, namely, Haiyin Insurance (Hong Kong) Co., Limited and Hywin International Insurance Broker Limited for nil consideration, and Haiyin International Asset Management Limited and Hywin Asset Management (Hong Kong) Limited for US$641. After the disposals, the Company no longer holds financial service licenses in Hong Kong.
The disposal represented a strategic shift from providing wealth management service and asset management service to focusing on new businesses in the technology sector, including digital assets, e-commerce and other opportunities in consumer technology and enterprise technology. The Company has classified the historical financial results of Wealth management and Asset management service as discontinued operations in the Company’s consolidated statements of operations and comprehensive (loss) income for all periods presented.
The following tables set forth statement of operations of discontinued operations which were included in the Company’s consolidated financial statements:
| |
|
Year Ended
June 30
|
|
|
Two Months
Ended
August 31,
|
|
| |
|
2024
|
|
|
2024
|
|
| |
|
US$
|
|
|
US$
|
|
| |
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
|
|
|
|
|
|
|
Wealth management
|
|
|
2,286 |
|
|
|
11 |
|
|
Asset management
|
|
|
3,919 |
|
|
|
1,170 |
|
|
Total net revenues
|
|
|
6,205 |
|
|
|
1,181 |
|
| |
|
|
|
|
|
|
|
|
|
Operating cost and expenses
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
1,451 |
|
|
|
602 |
|
|
Sales and marketing expenses
|
|
|
359 |
|
|
|
- |
|
|
General and administrative expenses
|
|
|
1,969 |
|
|
|
266 |
|
|
Asset impairment loss
|
|
|
2,158 |
|
|
|
- |
|
|
Total operating cost and expenses
|
|
|
5,937 |
|
|
|
868 |
|
| |
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
268 |
|
|
|
313 |
|
| |
|
|
|
|
|
|
|
|
|
Other expense, net
|
|
|
(16 |
) |
|
|
(1 |
) |
| |
|
|
|
|
|
|
|
|
|
Income before income tax expense
|
|
|
252 |
|
|
|
312 |
|
|
Income tax expense
|
|
|
(230 |
) |
|
|
(29 |
) |
|
Net income from discontinued operations
|
|
|
22 |
|
|
|
283 |
|
| |
|
|
|
|
|
|
|
|
|
Gain on disposal of subsidiaries from discontinued operations, net
|
|
|
- |
|
|
|
138 |
|
| |
|
|
|
|
|
|
|
|
|
Income for the year from discontinued operations, net of income taxes
|
|
|
22 |
|
|
|
421 |
|
| |
|
|
|
|
|
|
|
|
|
Summarized cash flow information for discontinued operations is as follows:
|
|
|
|
|
|
|
|
|
|
Net cash flows used in operating activities
|
|
|
(587 |
) |
|
|
(1,265 |
) |
|
Net cash flows provided by investing activities
|
|
|
- |
|
|
|
33 |
|
| |
|
|
|
|
|
|
|
|
|
The following table summarizes significant non-cash operating items and capital expenditures of discontinued operations included in the consolidated statements of cash flows for the periods presented.
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Significant non-cash operating items
|
|
|
|
|
|
|
|
|
|
Amortization of intangible asset
|
|
|
51 |
|
|
|
- |
|
|
Asset impairment loss
|
|
|
2,158 |
|
|
|
- |
|
Gain from disposal of subsidiaries under discontinued operations:
| |
|
Wealth
management
business
|
|
|
Asset
management
business
|
|
|
Total
|
|
| |
|
US$
|
|
|
US$
|
|
|
US$
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Considerations received
|
|
|
- |
|
|
|
641 |
|
|
|
641 |
|
|
Less: Net assets disposed of
|
|
|
(134 |
) |
|
|
(369 |
) |
|
|
(503 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/gain from disposal of subsidiaries
|
|
|
(134 |
) |
|
|
272 |
|
|
|
138 |
|
Reconciliation of the carrying amount of assets and liabilities:
| |
|
As of June 30,
2024
|
|
|
As of August 31,
2025
|
|
| |
|
US$
|
|
|
US$
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
1,873 |
|
|
|
608 |
|
|
Deposits, prepayments and other current assets
|
|
|
- |
|
|
|
256 |
|
|
Due from related parties
|
|
|
- |
|
|
|
93 |
|
|
Income tax receivable
|
|
|
- |
|
|
|
220 |
|
| |
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
1,873 |
|
|
|
1,177 |
|
| |
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Commission payable
|
|
|
859 |
|
|
|
378 |
|
|
Income tax payable
|
|
|
91 |
|
|
|
210 |
|
|
Due to related parties
|
|
|
1,970 |
|
|
|
86 |
|
|
Other payable and accrued liabilities
|
|
|
7 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
2,927 |
|
|
|
674 |
|
| |
|
|
|
|
|
|
|
|
|
Net (liabilities)/assets
|
|
|
(1,054 |
) |
|
|
503 |
|
|