On March 1st, Capital State learned that on February 26, Hywin Holdings Ltd. submitted a prospectus to the US Securities Regulatory Commission. It was proposed to be in the United States as “HYW”.
Haiyin Wealth was established in 2006. Haiyin Wealth is the third largest third-party wealth management service provider in China. Based on the transaction volume in 2019, Haiyin Wealth’s market share is 7.5%. The company mainly provides customers with wealth management services, insurance brokerage services, asset management services and other services. The company has successively established more than 170 wealth centers in more than 80 major cities in China (data statistics time as of December 2020.
The prospectus shows that as of June 30, 2018, 2019, and 2020, Haiyin Wealth’s revenue was 1.151 billion yuan, 1.147 billion yuan and 1.285 billion yuan; net profits were 42.88 million yuan and 6,146 yuan respectively. Ten thousand yuan and 106 million yuan.
Capital State noted that, as wealth management products include a large portion of real estate-related investment businesses, fluctuations in the Chinese real estate industry have a huge impact on the company. As of June 30, 2018, 2019 and 2020, the total transaction volume of real estate products accounted for 51.3%, 60.4% and 57.5% of the company’s total transaction volume of all wealth management products, respectively. The company expects that real estate or related products will continue to account for a large proportion of distributed products.
In addition, Haiyin Wealth also has the risk of high customer concentration. According to the prospectus, as of June 30, 2018, 2019 and 2020, the company’s top three customers accounted for 54%, 31% and 51% of the company’s total revenue, respectively. The company’s top five customers accounted for 62%, 43% and 60% of total revenue respectively.
Haiyin Wealth plans to use the funds raised from the IPO to expand the company’s asset management service business and wealth management service business in areas such as institutional customers and “family office” (family office); expand the company’s branches in China and overseas Institutional network; IT investment allocated to the company, including IT infrastructure, robo-advisor platform, intelligent customer service technology platform and Hywin mobile platform; and general corporate purposes, including working capital, operating expenditure and capital expenditure.
Reprint indicated source：Spark Global Limited information