- Hiwin Holding CompanyNasdaq:Hugh) Announces updates on its strategic business transformation plan, which includes a complete exit from its wealth management and asset management businesses by terminating VIE agreements with China.
- The company’s other plans include shifting its business focus towards technology. Sector and change the name of the company to Santech Holdings Limited.
- The company has terminated its wealth management and asset management business with Hywin Wealth Management Co., Ltd., a variable interest entity in China, and will no longer be a consolidated entity. Hywin Wealth Management will be owned and controlled by Han Hongwei, who has indicated that he will continue to lead Hywin Wealth Management.
- Furthermore, the company plans to expand into the technology sector organically by embracing new technology models, forming strategic partnerships with third parties, or both.
- The Company’s business transformation plan aims to achieve sustainable growth, but cautions investors about the potential risks of investing in the American Depositary Shares. Short-term declines in operating metrics and revenues could adversely affect the Company’s financial condition and operating results.
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