China Hywin Wealth Investigated in China for Involvement in Illegal Fundraising, Missed Payments on Asset-Backed Investments in 2023, Announced in 2024 July to Exit Wealth & Asset Management Businesses with $1.2 Billion AUM Focusing on HNW Clients & Shifts to a Consumer-Focused Technology Company, Company Renamed as Santech Holdings Limited, Hywin Wealth Management Will be Owned & Controlled by Han Hongwei, Hywin Wealth Has 1,749 Relationship Mangers Across 91 Cities in China in 2023
12th September 2024 | Hong Kong
China independent wealth management firm Hywin Wealth is being investigated in China for involvement in illegal fundraising, and had missed payments on asset-backed investments in 2023. In 2024 July, China Shanghai-based Hywin Holdings announced to exit the Wealth & Asset Management businesses with $1.2 billion AUM focusing on HNW clients (high net worth), and shifts to a consumer-focused technology company (Company renamed as Santech Holdings Limited). In 2023, Hywin Wealth has 1,749 relationship mangers across 91 cities in China, and the asset management business AUM is at $1.2 billion (June 2023). In 2023, Hywin Wealth had missed payments on asset-backed investments, with the firm products mainly linked to China property sector. Announcement (28/6/24): “Hywin Holdings Ltd. (the “Company”) (NASDAQ: HYW) today announced updates on its plan for strategic business transformation. Reference is made to the announcement made by the Company on March 27, 2024 (the “Announcement”) where the Company announced its plan for strategic business transformation. The Company has continued to assess ongoing changes in its operating environment, and today announced further updates to transform its businesses, including: (i) completely exit the wealth management and asset management businesses by terminating the China VIE Agreements (as defined below), (ii) shift its business focus towards the technology sector, and (iii) change the Company’s name to Santech Holdings Limited.” Exit from the Wealth Management and Asset Management Businesses – The Company has decided to cease its wealth management and asset management businesses by terminating the contractual arrangements (the “China VIE Agreements”) with Hywin Wealth Management Co., Ltd. (“Hywin Wealth Management”), a variable interest entity in China currently controlled by Hywin Enterprise Management Consulting (Shanghai) Co., Ltd., a wholly owned subsidiary of the Company. Following such termination, Hywin Wealth Management will cease to be a consolidated entity of the Company. Hywin Wealth Management will be owned and controlled by Mr. Han Hongwei, who has indicated that he will continue to lead Hywin Wealth Management and will remain fully committed to resolve ongoing redemption issues for its affected Chinese clients. New Business Focus in Technology – The Company plans to become a technology company. In particular, the Company plans to seek new, innovative opportunities in the technology sector, including, among others, new retail, social e-commerce, and metaverse industries. The Company may seek to expand into the technology sector organically by incubating new technology models, or by forming strategic partnerships with third parties, or both. In addition, the Company will further assess its remaining assets and operations in its health management services and may consider alternatives with respect to such assets and operations. Change of the Company’s Name – To align with the Company’s new business focus, the Company proposes to change its English name from Hywin Holdings Ltd. to Santech Holdings Limited and to adopt and register the Chinese name of 三合智能控股有限公司 as its dual foreign name. An extraordinary general meeting will be held by the Company in due course to pass a special resolution to effect such name change. The board of directors of the Company approved the above business transformation plan on June 28, 2024. While the Company believes its business transformation plan will open up new opportunities for the Company and bring about sustainable growth in the long run, it cautions investors about the risks associated with investing in the Company’s American Depositary Shares (“ADSs”). As with any change, there are inherent uncertainties associated with such restructuring. The Company anticipates that it will experience a significant reduction in both operational and revenue scales in the short term, during which it may not achieve its historical profit level. As a result, the Company’s business, financial condition and results of operations could be materially and adversely affected. The Company warns investors to be cautious when investing in its ADSs.
“ China Hywin Wealth Investigated in China for Involvement in Illegal Fundraising, Missed Payments on Asset-Backed Investments in 2023, Announced in 2024 July to Exit Wealth & Asset Management Businesses with $1.2 Billion AUM Focusing on HNW Clients & Shifts to a Consumer-Focused Technology Company, Company Renamed as Santech Holdings Limited, Hywin Wealth Management Will be Owned & Controlled by Han Hongwei, Hywin Wealth Has 1,749 Relationship Mangers Across 91 Cities in China in 2023 “
China Shanghai-Based Hywin to Exit Wealth & Asset Management Businesses with $1.2 Billion AUM Focusing on HNW Clients & Shifts to a Consumer-Focused Technology Company, Company Renamed as Santech Holdings Limited, Hywin Wealth Management Will be Owned & Controlled by Han Hongwei, Hywin Wealth Has 1,749 Relationship Mangers Across 91 Cities in China in 2023
3rd July 2024 – China Shanghai-based Hywin Holdings has announced to exit the Wealth & Asset Management businesses with $1.2 billion AUM focusing on HNW clients (high net worth), and shifts to a consumer-focused technology company (Company renamed as Santech Holdings Limited). In 2023, Hywin Wealth has 1,749 relationship mangers across 91 cities in China, and the asset management business AUM is at $1.2 billion (June 2023). In 2023, Hywin Wealth had missed payments on asset-backed investments, with the firm products mainly linked to China property sector. Announcement (28/6/24): “Hywin Holdings Ltd. (the “Company”) (NASDAQ: HYW) today announced updates on its plan for strategic business transformation. Reference is made to the announcement made by the Company on March 27, 2024 (the “Announcement”) where the Company announced its plan for strategic business transformation. The Company has continued to assess ongoing changes in its operating environment, and today announced further updates to transform its businesses, including: (i) completely exit the wealth management and asset management businesses by terminating the China VIE Agreements (as defined below), (ii) shift its business focus towards the technology sector, and (iii) change the Company’s name to Santech Holdings Limited.” Exit from the Wealth Management and Asset Management Businesses – The Company has decided to cease its wealth management and asset management businesses by terminating the contractual arrangements (the “China VIE Agreements”) with Hywin Wealth Management Co., Ltd. (“Hywin Wealth Management”), a variable interest entity in China currently controlled by Hywin Enterprise Management Consulting (Shanghai) Co., Ltd., a wholly owned subsidiary of the Company. Following such termination, Hywin Wealth Management will cease to be a consolidated entity of the Company. Hywin Wealth Management will be owned and controlled by Mr. Han Hongwei, who has indicated that he will continue to lead Hywin Wealth Management and will remain fully committed to resolve ongoing redemption issues for its affected Chinese clients. New Business Focus in Technology – The Company plans to become a technology company. In particular, the Company plans to seek new, innovative opportunities in the technology sector, including, among others, new retail, social e-commerce, and metaverse industries. The Company may seek to expand into the technology sector organically by incubating new technology models, or by forming strategic partnerships with third parties, or both. In addition, the Company will further assess its remaining assets and operations in its health management services and may consider alternatives with respect to such assets and operations. Change of the Company’s Name – To align with the Company’s new business focus, the Company proposes to change its English name from Hywin Holdings Ltd. to Santech Holdings Limited and to adopt and register the Chinese name of 三合智能控股有限公司 as its dual foreign name. An extraordinary general meeting will be held by the Company in due course to pass a special resolution to effect such name change. The board of directors of the Company approved the above business transformation plan on June 28, 2024. While the Company believes its business transformation plan will open up new opportunities for the Company and bring about sustainable growth in the long run, it cautions investors about the risks associated with investing in the Company’s American Depositary Shares (“ADSs”). As with any change, there are inherent uncertainties associated with such restructuring. The Company anticipates that it will experience a significant reduction in both operational and revenue scales in the short term, during which it may not achieve its historical profit level. As a result, the Company’s business, financial condition and results of operations could be materially and adversely affected. The Company warns investors to be cautious when investing in its ADSs.
About Hywin Holdings Ltd. – Hywin Holdings Limited, to be renamed Santech Holdings Limited, is a consumer-focused technology company. The Company historically served a large number of high net-worth clients in China in financial services and health management, and accumulated a large customer base. The Company has exited or disposed of its historical businesses in financial services and is actively exploring innovative new opportunities in technology, including but not limited to new retail, social e-commerce and metaverse.
China Hywin Wealth Missed Payments on Asset-Backed Investments, Firm Products Mainly Linked to China Property Sector, Hywin Wealth Has 1,749 Relationship Mangers Across 91 Cities in China, Asset Management Business AUM at $1.2 Billion, Hywin Holding Share Price Decreased -65% in Last 30 Days to $68 Million
20th December 2023 – China independent wealth management firm Hywin Wealth had missed payments on asset-backed investments, with the firm products mainly linked to China property sector. Hywin Wealth has 1,749 relationship mangers across 91 cities in China, and the asset management business AUM is at $1.2 billion (June 2023). Hywin Holding share price decreased -65% in last 30 days to $68 million (19/12/23). Hywin Holding (14/12/23): “Hywin Holdings Ltd. (“Hywin”, or the “Company”) (NASDAQ: HYW), a leading independent wealth management service provider in China, today announced that redemption issues have been reported on certain asset-backed products previously distributed by the Company. The asset managers of these products were unable to reach an agreement with the relevant clients to defer redemption. While the Company acted only as distributor of these asset-backed products, the clients are now demanding repayment from the Company. Any failure to adequately deal with these redemption issues could materially and adversely affect our reputation, client relationship, business, financial condition and prospects. The Company has formed a special investigation committee comprised of members of senior management to oversee an internal investigation. The investigation is at a preliminary stage. Additional information concerning material developments of the investigation will be released by the Company in a timely manner.”
Hywin Holding (14/12/23): “Hywin Holdings Ltd. (“Hywin”, or the “Company”) (NASDAQ: HYW), a leading independent wealth management service provider in China, today announced that redemption issues have been reported on certain asset-backed products previously distributed by the Company. The asset managers of these products were unable to reach an agreement with the relevant clients to defer redemption. While the Company acted only as distributor of these asset-backed products, the clients are now demanding repayment from the Company. Any failure to adequately deal with these redemption issues could materially and adversely affect our reputation, client relationship, business, financial condition and prospects. The Company has formed a special investigation committee comprised of members of senior management to oversee an internal investigation. The investigation is at a preliminary stage. Additional information concerning material developments of the investigation will be released by the Company in a timely manner.”
China Hywin Wealth Missed Payments on Asset-Backed Investments
Hywin Financial Holding Group
Hywin Financial Holding Group was established in 1989, headquartered in China’s international financial center – the Lujiazui Finance and Trade Zone in Shanghai. Currently, the Group has over 5,000 staff, manages more than RMB100 billion assets and operates in the United States of America and the United Kingdom. Hywin International is a subsidiary of Hywin Financial Holdings Group Co., Ltd. established in Hong Kong and is the core operating platform for overseas businesses.
About Hywin Holdings Ltd.
Hywin (NASDAQ: HYW) is a leading independent wealth management service provider in China focusing on providing asset allocation advisory services and comprehensive financial products to high-net-worth clients. The Company’s primary services are wealth management, asset management, other comprehensive financial services, and health management services. Wealth management is currently the Company’s largest business segment, in which its onshore and offshore solution platforms serve clients across generations. The Company also offers integrated and high-end health screening and health management services to high-net-worth clients in China, and aims to become a dual-platform serving clients across market cycles and life cycles. For more information, please visit https://ir.hywinwealth.com/.
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