On the evening of December 14th, Haiyin Holdings (NASDAQ: HYW) announced that some of its distributed asset-backed products had redemption issues and could not reach a deferred redemption agreement with relevant customers. Although Haiyin is only a distributor of these products, the customer requests the company to repay. The announcement also stated that Haiyin has established a special investigation committee composed of executives to supervise internal investigations, which is still in its early stages. The company will promptly release significant progress in the investigation.
Since December 8th, the stock price of Haiyin Holdings has been declining for six consecutive trading days. On December 13th, the stock price of Haiyin Holdings plummeted, closing down 42.61%. As of the close on December 15th, Haiyin Holdings closed at $2.37, a decrease of 14.55% from the previous day.
Previously, news of problems with Haiyin Wealth had been circulating on social media platforms for several days, with a widely circulated chat record claiming that its product liquidation expiration date had been extended. On December 15th, a letter from Haiyin Holdings to its clients was sent, signed by Haiyin Holdings Chairman Han Hongwei, stating that it will "safeguard the interests of customers and employees and firmly take responsibility until the end.".
The previously released financial report for the fiscal year 2023 showed that as of June 30, 2023, Haiyin Holdings had a net income of RMB 2.092 billion during the reporting period, a year-on-year increase of 7.71%; The net profit was RMB 120 million, a year-on-year decrease of 49.01%. Haiyin Holdings also disclosed that the total number of Haiyin wealth managers in this fiscal year was 1749, a year-on-year increase of 3.1%, covering 91 key cities and 185 wealth centers, continuing to grow compared to the previous year.
In March 2021, Haiyin Wealth was listed on NASDAQ, becoming the second third-party wealth management company to go public in the United States. The relevant introduction in the announcement shows that Haiyin is a leading independent wealth management service provider in China, focusing on providing asset allocation consulting services and comprehensive services to provide financial products for high net worth clients. Haiyin's main business includes wealth management, asset management, other comprehensive financial services, and health management services. Wealth management is currently its largest business segment.