Author | Yifan

Source | New shares of Gronghui

Provide professional information in the field of IPO, pay attention to the new shares of Gronghui

On January 11, Yibo Financial Holdings Limited ("Yibo Financial") updated its prospectus on the Hong Kong Stock Exchange. Founded in 2015 and headquartered in Hong Kong, ebo Financial is a Hong Kong financial services provider that mainly provides financial and wealth management services to high net worth individual clients and enterprises and financial institutions, including sales and advisory services, asset management services and other financial services. In 2020, Yibo Financial launched Hong Kong's first approved encrypted currency fund.

Financial position and operating results

The sales and advisory services of eBO Financial are subdivided into investment and advisory services, placement services, brokerage services and external asset manager services. Other fund services are subdivided into money lending and related services, insurance agency services and other services. The profit of these two types of business is to collect the commission or service fee agreed upon in the contract with the customer.

In asset management services, the company will act as an investment consultant or investment manager to provide investment advice and investment management services to clients, and collect consultancy fees and management fees, management fees will be charged according to the size of asset management, the commission ratio agreed in the contract, and the performance of the investment portfolio; at the same time, the company will also charge administrative fees for fund administrative management services.

From the point of view of the company's income composition, the company's total operating income mainly comes from two sectors: sales and consulting services and asset management services. The main business of eBO Financial is done through its subsidiary, eBO Asia.

The company's total operating income has shown a steady growth trend in the past three years, rising 3.1 per cent from HK $103.789 million in 2017 to HK $107 million in 2018 and to HK $121.72 million in 2019, with an average annual compound growth rate of 5.46 per cent. From 2017 to 2019, the company's net profit was 30.919 million yuan, 31.509 million yuan and 29.874 million yuan respectively. The net profit remained stable for 3 years, but there was no significant increase.

Launch of the first cryptocurrency fund ETF

According to the latest prospectus, Guangzhou Yixian Electronic Commerce Company (Yixian) made its initial public offering in the United States on November 17, 2020. EBO Asia, a subsidiary of Yibo Finance, applied to purchase American Depositary shares of Yixian at a subscription price of US $2000000 (HK $15600000). Yixian American depositary shares were acquired on November 19th, 2020 at the IPO price of US $10.50 per American depositary share of Yixian.

EBO Asia sold 190000 American depositary shares (with a total value of US $3300000, HK $25740000) for US $17.5207 on the same day, successfully arbitrage US $1300000 (HK $1,0140,000) for Yibo Financial. In response to the investment and acquisition, the company said that the short-term gains will be used as the company's working capital.

Meanwhile, eBO Financial announced in early 2020 that it would launch Hong Kong's first encrypted currency fund, ETF, which was also approved by Hong Kong's Securities and Futures Commission (SFC) and plans to raise about $100m within a year of launch. The company also said to the fund launch that virtual asset investment (cryptocurrency) will account for no more than 10% of the fund's portfolio and that the fund will be restricted to purchases by professional investors.

Thus it can be seen that Yibo Finance, as a financial service provider, has a professional investment level, and the company shows advanced market acumen when using market investment hotspots (virtual currency) for investment allocation.

This is the second sprint of Yibo Finance for the listing of Hong Kong stocks. The financial performance of the company is affected by the performance of the financial markets of Hong Kong and mainland China, and the performance of Yibo Financial after the listing of Hong Kong shares remains to be seen.