Haiyin Holdings (HYW.O), a US listed company under the Haiyin Group, admits that some products have exploded.
On December 14th, Haiyin Holdings announced that there were 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," Haiyin Holdings warned of the risk.
In 2006, Haiyin Wealth Management Co., Ltd. was officially established 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. The prospectus disclosed 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%, and the net profit was RMB 120 million, a year-on-year decrease of 49.01%.
As of December 14th, Haiyin Holdings closed at $2.77, a decrease of 15.95%, with a market value of $77.6608 million. On December 13th, the company closed at $3.30, a decrease of 42.61%. Compared to Haiyin Holdings closing at $5.75 on Tuesday, the company's stock price fell 51.83% in two trading days. During the pre market trading session on December 15th, Haiyin Holdings fell more than 5% at one point.