Rumors come true! HYW.O, a US listed company under the "Haiyin Series", recently admitted to redemption issues with some of its products. Haiyin Holdings has announced that there are redemption issues with certain asset-backed products previously distributed by the company. The asset managers of these products are unable to reach deferred redemption agreements with relevant clients. Although the company only serves as a distributor of these asset-backed products, the customer is now demanding repayment from the company.
Haiyin Holdings stated that the company has established a special investigation committee composed of senior management members to oversee internal investigations. The investigation is still in its preliminary stage, and other information regarding significant progress in the investigation will be promptly released by the company. "Any failure to fully address these redemption issues may have a significant adverse impact on our reputation, customer relationships, business, financial condition, and prospects."
According to the data, Haiyin Wealth Management Co., Ltd. (hereinafter referred to as "Haiyin Wealth") was officially established in 2006, with its headquarters located in Shanghai. In March 2021, Haiyin Wealth went public on NASDAQ with the stock code "HYW" through its Cayman Islands registered company, Hywin Holdings Ltd (Haiyin Holdings, not Shanghai based "Haiyin Holdings Group Co., Ltd."), becoming the second third-party wealth management company to go public in the United States after Noah Wealth. Haiyin Holdings claims in its prospectus that it is "the largest provider of fixed income real estate products in China.".
According to data submitted by Haiyin Holdings to the US Securities Regulatory Commission in October 2023, as of the end of June 2023, Haiyin Wealth has 185 wealth management centers, 1749 wealth managers, and 46627 active customers in 91 cities across the country. According to the 2023 fiscal year annual report, the revenue of Haiyin Holdings from July 1, 2022 to June 30, 2023 was RMB 2.092 billion, a year-on-year increase of 7.71%; The net profit was RMB 120 million, a year-on-year decrease of 49.01%.
On December 13th local time, the stock price of Haiyin Holdings suddenly plummeted! The lowest intraday drop was 51.30%, reaching a historic low of $2.8 at one point. As of the close of the day, the stock price of Haiyin Holdings fell 42.61% to $3.3. On the news page, a screenshot of a chat record was circulating online at that time, showing that due to bank reasons and the fact that December was the peak period for fixed income product interest payments, the time for product settlement and receipt was extended.
As of December 15th local time, Haiyin Holdings closed at $2.37, a further decrease of 14.44%, with a market value of $66.36 million. On the previous trading day, Haiyin Holdings closed at $2.77, a decrease of 15.95%, with a market value of $77.6608 million. Compared to the closing of $5.75 on December 12th, the stock price of Haiyin Holdings has fallen by 58.78% in three trading days.