WEB NEWS Acquisitions
SHANGHAI, Sept. 27, 2017 /PRNewswire / -- Yintech Investment Holdings Limited (YIN) ("Yintech" or the "Company"), a leading provider of investment and trading services for individual customers in China, today announced that it has entered into a definitive agreement to acquire 100% equity interest in Forthright Securities Company Limited ("Forthright Securities") from Mr. Ming Yan, a co-founder and director of Yintech who held 21.4% of the Company as of June 30, 2017. Yintech has received approval from the Securities and Futures Commission of Hong Kong (the "SFC") for the proposed transaction.
As a licensed corporation permitted to carry on Type 1 regulated activity (dealing in securities) under the Securities and Futures Ordinance, Forthright Securities is regulated by the SFC and provides brokerage services to individual and institutional customers for a variety of securities and financial products traded on global capital markets, including stocks, bonds and ETFs. As of August 31, 2017, Forthright Securities had total client assets of approximately HK$300 million.
The proposed transaction is expected to be completed in October 2017 for a total consideration of approximately US$2.1 million, subject to customary closing conditions and adjustments.
"This transaction is another step in our strategy to develop new businesses and explore new opportunities as we steadily expand our service offerings into medium and low risk products," commented Mr. Wenbin Chen, Chairman and CEO of Yintech. "By integrating Forthright Securities under the Yintech umbrella, we will now be able to provide our customers with another important asset class to diversify their investment portfolio. With Forthright Securities' proprietary mobile apps, customers will be able to trade around the clock on global capital markets and enjoy customized one-on-one services. I am confident that our deep understanding of, and extensive experience in serving, Chinese individual investors will allow us to further differentiate ourselves in this rapidly growing yet highly competitive market."
Joint Venture
SHANGHAI, July 7, 2017 /PRNewswire / -- Yintech Investment Holdings Limited (NASDAQ: YIN) ("Yintech" or the "Company"), a leading provider of investment and trading services for individual customers in China, today announced that it has entered into an agreement (the "Agreement") to form a financial software, information and services joint venture with SINA Corporation (NASDAQ: SINA) ("SINA"), a leading online media company serving China and the global Chinese communities.
Pursuant to the Agreement, Yintech and SINA will take a 51.0% and 49.0% equity stake, respectively, in SINA Caidao (Shanghai) Information Technology Co., Ltd. ("SINA Caidao") after completing a series of reorganization and capital increases, through which SINA Caidao's paid-in capital will be enlarged to RMB200.0 million. SINA Caidao will focus on providing financial software, information and services to individual investors seeking investments in securities, wealth management, futures and gold products. The reorganization and capital increase is expected to complete in the third quarter of 2017. SINA Caidao is expected to begin generating revenue in the fourth quarter of 2017.
"Our joint venture with SINA is another step in our strategy to become a provider of diversified investment and trading services to individuals in China," commented Mr. Wenbin Chen, Chairman and CEO of Yintech. "As we expand our service offerings, we particularly value the experience and highly successful businesses SINA has incubated as well as their extensive online media and social networking resources. Leveraging these resources and combining them with our deep understanding of, and extensive experience in serving Chinese individual investors, we are confident that our joint venture will have the support needed to rapidly grow into a market leader."
Comments & Business Outlook
Third Quarter 2016 Financial Results
Revenues were RMB747.5 million (US$112.1 million), an increase of 97.2% from RMB379.0 million in the same quarter last year and an increase of 47.3% from RMB507.4 million in the previous quarter.
Non-GAAP diluted earnings per ADS were RMB3.86 (US$0.58), compared with non-GAAP diluted earnings per ADS of RMB2.87 in the same quarter last year and non-GAAP diluted earnings per ADS of RMB3.50 in the previous quarter.
“We are pleased to deliver another quarter of strong results as we continue to strengthen our position as a market leader,” commented Mr. Wenbin Chen, Chairman and CEO of Yintech. “We adjusted our management structure to provide each business unit more autonomy and flexibility to rapidly respond to market changes and emerging opportunities. Following a smooth transition, Gold Master is now fully consolidated and integrated under Yintech. Furthermore, we expanded our brand portfolio into Gold Master, Yin Tian Xia, Da Xiang and Yin Ru Yi, which I am confident will enhance our market visibility and enable us to target a wider range of customers.”
“We continued to see excellent growth momentum in customer trading volume, revenues and net income during the quarter,” commented Mr. Jingbo Wang, CFO of Yintech. “On top of the organic growth of our existing business, we began consolidating Gold Master’s results of operations in September 2016 which directly contributed to our top and bottom line. While we encountered some challenges in expanding our mini account business, we remain committed to developing it and are optimistic about its long-term prospects.”
Business Outlook
Based on the information available as of the date of this press release, Yintech provides the following outlook with the consolidation of Gold Master, which reflects the Company’s current and preliminary view and is subject to change:
2016 Fourth Quarter Guidance
Customer trading volume will be in the range of RMB1,100 billion to RMB1,200 billion.
Comments & Business Outlook
Second Quarter 2016 Financial Results
Revenues were RMB507.4 million (US$76.3 million), an increase of 45.0% from RMB350.0 million in the same quarter last year and an increase of 25.9% from RMB402.9 million in the previous quarter.
Non-GAAP diluted earnings per ADS were RMB3.50 (US$0.53), compared with non-GAAP diluted earnings per ADS of RMB2.60 in the same quarter last year and non-GAAP diluted earnings per ADS of RMB3.03 in the previous quarter.
“We are pleased to see our market position continue to strengthen in the second quarter of 2016,” commented Mr. Wenbin Chen, Chairman and CEO of Yintech. “Our focus on providing high-quality mobile products and services through our own proprietary technology has helped us stand out from our competitors and gain market share. We just announced the acquisition of Gold Master, our nearest competitor in terms of customer trading volume and the leader on the Shanghai Gold Exchange, which will significantly enhance our presence on that exchange and solidify our overall market leadership.”
“We delivered excellent growth in customer trading volume, revenues and net income from the already high baseline we set for ourselves during the previous quarter,” commented Mr. Jingbo Wang, CFO of Yintech. “Our solid results were partly due to increased market volatility following the Brexit vote but more importantly, were a result of our continuous efforts to improve our technology and services, and expand our customer base. The acquisition of Gold Master will begin contributing to our bottom line immediately.”
Business Outlook
Based on the information available as of the date of this press release, Yintech provides the following outlook, which reflects the Company’s current and preliminary view and is subject to change:
2016 Third Quarter Guidance
Excluding contribution from Gold Master, customer trading volume will be in the range of RMB560 billion to RMB620 billion.
Acquisitions
SHANGHAI, China, Aug. 24, 2016 (GLOBE NEWSWIRE) -- Yintech Investment Holdings Limited (YIN) ("Yintech" or the "Company"), the largest online provider of spot commodity trading services in China by customer trading volume in both 2014 and 2015, today announced that it has entered into a definitive agreement (“Definitive Agreement”) to acquire 100% equity interest in Gold Master (HK) Company Limited (“Gold Master”), which, through its subsidiaries, offers online spot commodity trading services to individual customers in China on the Shanghai Gold Exchange.
Comments & Business Outlook
First Quarter 2016 Financial Results
Revenues were RMB402.9 million (US$62.5 million), an increase of 57.8% from RMB255.3 million in the same quarter last year and an increase of 54.0% from RMB261.6 million in the previous quarter. The increases were mainly due to the increases in net commissions and fees.
Non-GAAP diluted earnings per ADS were RMB3.03 (US$0.47), compared with non-GAAP diluted earnings per ADS of RMB1.74 in the same quarter last year and non-GAAP diluted earnings per ADS of RMB1.06 in the previous quarter.
“We brought our business to a new level in terms of operational efficiency and performance in the first quarter of 2016, with strong growth across all our business lines,” said Mr. Wenbin Chen, Chairman and CEO of Yintech. “We believe our successful IPO on Nasdaq last month will further strengthen our brand image and allow us to continue to invest heavily in technology in order to enhance our customers’ trading experience. We remain committed to expanding our presence on the Shanghai Gold Exchange.”
“Our customer volume, revenues and net income hit historical highs during the quarter, thanks to increased efficiency resulting from various operational adjustments we made during the second half of 2015,” commented Mr. Jingbo Wang, CFO of Yintech. “We remain confident about our full year performance given the recently launched Shanghai Gold Exchange and mini-account businesses, both of which have significant growth potential, and our existing business on the Tianjin and Guangdong Exchanges which continue to grow.”
Business Outlook
Based on the information available as of the date of this press release, Yintech provides the following outlook, which reflects the Company’s current and preliminary view and is subject to change:
2016 Second Quarter Guidance
Customer trading volume will in the range of RMB330 billion to RMB360 billion.
Revenues will be in the range of RMB410 to RMB450 million.
IPO Activity
YIN is set to price its IPO at $13.50 per ADS. According to the introduction from its F1 filing:
“We are the largest online provider of spot commodity trading services in China by customer trading volume in both 2014 and 2015, according to Euromonitor. We currently facilitate the trading by individual customers of silver, gold and other precious metals and commodities on three leading exchanges in China, namely the Shanghai Gold Exchange, the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange, which were the three largest exchanges for online spot commodity trading in China in terms of trading volume in 2015, respectively. We were the largest service provider by customer trading volume on the Tianjin Precious Metals Exchange from 2012 to 2015, and the largest service provider on the Guangdong Precious Metals Exchange in the fourth quarter of 2015. We commenced our operation on the Shanghai Gold Exchange in November 2015 and our customer trading volume has been growing rapidly since then.”
