Haiyin Wealth fell into a payment crisis, and the company responded: Affected by the economic downturn, the project was delayed
China Fund News Taylor
Recently, a third-party wealth management company, Hywin Wealth, has had problems with the redemption of its products.
Hywin Wealth's latest response
On the 17th, the official WeChat account of Hywin Wealth released the latest announcement, which showed that due to the recent economic downturn, the project has been delayed, which has caused inconvenience to investors. At present, Hywin Wealth has set up a special team to actively coordinate with the relevant parties of the project to plan the disposal plan. At present, according to the latest regulatory policies and industry guidance, Hywin Wealth has taken the initiative to withdraw and sort out the existing business, and the relevant plans will be given to you before the end of the month, hoping that everyone will not believe or spread rumors.
According to Taylor's interview, the "voluntary withdrawal and sorting out the existing business" mentioned by Hywin Wealth refers to the benign withdrawal of non-standard fixed income business, which is a non-standardized debt product that has been filed with the Gold Exchange.
According to people familiar with the matter, some of these products are invested in real estate projects, and some are invested in supply chain finance.
There was a problem with the redemption of Haiyin's wealth, and the capital market had already reacted.
On December 13, the share price of Hywin Wealth crashed, plummeting by more than 40%, and fell by 15.94% and 14.57% respectively in the next two trading days.
The related A-share listed company Rock shares have also fallen sharply recently. Han Hongwei, chairman of Haiyin Holdings, and Han Xiao, the actual controller of Rock Shares, are father and son.
At that time, a widely circulated chat record said that the maturity time of its product liquidation had been extended, and the staff of Hywin Wealth explained that due to banking reasons and the company's December was the peak interest payment period for fixed income products, the time for product liquidation was extended.
On the evening of December 14, Hywin Holdings announced that some of the asset-backed products it distributed had redemption problems and failed to reach a deferred redemption agreement with relevant customers. Although Hywin is only a distributor of these products, the customer demanded repayment from the company. At the same time, the announcement said that Hywin has set up a special investigation committee composed of senior executives to supervise the internal investigation, which is still in the early stage, and the company will release major progress in the investigation in a timely manner.
On December 15, a "letter to customers" was issued by Hywin Holdings, signed by Han Hongwei, chairman of Hywin Holdings, saying that it would "safeguard the interests of customers and employees and resolutely be responsible to the end".
The third largest independent wealth management institution in China
According to the official website, in 2006, Hywin Wealth was established in Lujiazui, Shanghai, and after more than ten years of development, the company has set up more than 170 wealth centers in more than 80 major cities in China, and has gradually deployed in Hong Kong, the United Kingdom, the United States and other places.
With more than 2,500 employees, Hywin Wealth provides comprehensive services such as asset allocation consulting, wealth management, and family offices for more than 146,000 high-net-worth individuals and institutions. The main business is wealth management, asset management, other comprehensive business financial services, and health management services, and wealth management is currently its largest business segment.
On the evening of March 26, 2021, Hywin Wealth was listed on NASDAQ. According to the prospectus, Hywin Wealth is the third largest and fastest-growing third-party wealth management service provider in China.
In addition, Hywin Wealth disclosed in the prospectus that it is "the largest provider of real estate fixed income products in China", and that the products provided invest in real estate projects of well-known and large-scale developers with good credit ratings such as Evergrande and Sunac, with a term of 6-36 months. ”
According to the previously released financial report for fiscal year 2023, as of June 30, 2023, Hywin Holdings' net income during the reporting period was RMB2.092 billion, a year-on-year increase of 7.71%, and its net profit was RMB120 million, a year-on-year decrease of 49.01%. Hywin Holdings also disclosed that the total number of Hywin financial planners in this fiscal year was 1,749, a year-on-year increase of 3.1%, with 46,627 active customers. The number of key cities covered reached 91, and the number of wealth centers reached 185, which continued to grow over the previous year.