Santech Holdings Limited Announces Change of Auditor and Filing of Compliance Plan with Nasdaq
Santech Holdings has announced two significant corporate developments on January 22, 2025. First, the company's Audit Committee has appointed Audit Alliance LLP as its new independent registered public accounting firm, replacing Marcum Asia CPAs LLP, effective from November 15, 2024. The change was attributed to recent significant changes in the company's business focus and scale, not due to any disagreements on accounting principles or practices.
Secondly, the company has submitted a compliance plan to Nasdaq requesting an extension to regain compliance with continued listing requirements. The plan outlines the timeline for filing its Annual Report on Form 20-F for the fiscal year ended June 30, 2024, to become current with reporting requirements within Nasdaq's discretionary period.
Santech Holdings ha annunciato due importanti sviluppi aziendali il 22 gennaio 2025. In primo luogo, il Comitato di Audit dell'azienda ha nominato Audit Alliance LLP come nuovo studio contabile pubblico registrato indipendente, sostituendo Marcum Asia CPAs LLP, con effetto dal 15 novembre 2024. Il cambiamento è stato attribuito a recenti modifiche significative nel focus e nella scala dell'attività dell'azienda, e non a disaccordi sui principi o le pratiche contabili.
In secondo luogo, l'azienda ha presentato un piano di conformità a Nasdaq per richiedere un'estensione per riprendere la conformità con i requisiti di quotazione continuativa. Il piano delinea la tempistica per la presentazione del suo Rapporto Annuale sul Modulo 20-F per l'anno fiscale conclusosi il 30 giugno 2024, per diventare attuale con i requisiti di reporting entro il periodo discrezionale di Nasdaq.
Santech Holdings ha anunciado dos importantes desarrollos corporativos el 22 de enero de 2025. En primer lugar, el Comité de Auditoría de la empresa ha nombrado a Audit Alliance LLP como su nueva firma de contabilidad pública registrada independiente, reemplazando a Marcum Asia CPAs LLP, con efecto a partir del 15 de noviembre de 2024. El cambio se atribuyó a recientes cambios significativos en el enfoque y alcance del negocio de la empresa, y no a desacuerdos sobre principios o prácticas contables.
En segundo lugar, la empresa ha presentado un plan de cumplimiento a Nasdaq solicitando una extensión para recuperar la conformidad con los requisitos de listado continuo. El plan detalla la línea de tiempo para presentar su Informe Anual en el Formulario 20-F para el año fiscal que finalizó el 30 de junio de 2024, a fin de estar al día con los requisitos de informes dentro del período discrecional de Nasdaq.
Santech Holdings는 2025년 1월 22일 두 가지 중요한 기업 발전을 발표했습니다. 첫째, 회사의 감사 위원회는 Audit Alliance LLP를 새로운 독립 등록 공인 회계 법인으로 임명했으며, Marcum Asia CPAs LLP를 2024년 11월 15일부터 대체했습니다. 이 변화는 회사의 비즈니스 초점과 규모의 최근 중대한 변화에 기인하고 있으며, 회계 원칙이나 관행에 대한 이견 때문은 아닙니다.
둘째, 회사는 Nasdaq에 지속적인 상장 요구 사항을 준수하기 위한 연장 요청을 포함하는 준수 계획을 제출했습니다. 이 계획은 2024년 6월 30일 종료된 회계 연도에 대한 20-F 양식의 연례 보고서를 제출하는 일정에 대해 설명하고 있으며, Nasdaq의 재량 기간 내 보고 요구 사항을 준수하기 위해 현재 상태로 돌아갈 수 있도록 하고 있습니다.
Santech Holdings a annoncé deux développements corporatifs significatifs le 22 janvier 2025. Tout d'abord, le Comité d'Audit de l'entreprise a nommé Audit Alliance LLP en tant que nouvelle société comptable publique indépendante enregistrée, remplaçant Marcum Asia CPAs LLP, avec effet à partir du 15 novembre 2024. Ce changement est attribué à des modifications récentes significatives dans l'orientation et l'échelle des activités de l'entreprise, et non à des désaccords sur les principes ou les pratiques comptables.
Deuxièmement, l'entreprise a soumis un plan de conformité à Nasdaq demandant une prolongation pour retrouver la conformité aux exigences de cotation continue. Le plan décrit le calendrier de dépôt de son Rapport Annuel sur le Formulaire 20-F pour l'année fiscale se terminant le 30 juin 2024, afin de se conformer aux exigences de reporting dans le cadre de la période discrétionnaire de Nasdaq.
Santech Holdings hat am 22. Januar 2025 zwei bedeutende Unternehmensentwicklungen bekannt gegeben. Erstens hat der Prüfungsausschuss des Unternehmens Audit Alliance LLP als neue unabhängige, registrierte öffentliche Wirtschaftsprüfungsgesellschaft ernannt und ersetzt damit Marcum Asia CPAs LLP, wirksam ab dem 15. November 2024. Die Änderung wurde durch kürzliche bedeutende Veränderungen im geschäftlichen Fokus und Umfang des Unternehmens bedingt und nicht aufgrund von Meinungsverschiedenheiten über Rechnungslegungsgrundsätze oder -praktiken.
Zweitens hat das Unternehmen einen Compliance-Plan bei Nasdaq eingereicht, in dem um eine Verlängerung gebeten wird, um die Einhaltung der fortlaufenden Listing-Anforderungen wiederzuerlangen. Der Plan beschreibt den Zeitrahmen für die Einreichung des Jahresberichts auf Formular 20-F für das am 30. Juni 2024 endende Geschäftsjahr, um innerhalb des Ermessenszeitraums von Nasdaq aktuell zu werden.
- Appointment of new PCAOB-registered auditor Audit Alliance LLP
- Proactive submission of compliance plan to Nasdaq for listing requirements
- Non-compliance with Nasdaq listing requirements
- Delayed filing of Annual Report Form 20-F for FY2024
- Risk of potential delisting from Nasdaq
Insights
The dual announcements from Santech Holdings raise several red flags that warrant investor attention. The auditor change, while stated to be due to business focus shifts, comes at a critical time when the company is already facing Nasdaq compliance issues due to delayed financial reporting.
The transition from MarcumAsia to Audit Alliance LLP is particularly noteworthy. While Audit Alliance's PCAOB registration provides a basic level of credibility, this type of auditor change during a period of delayed financial reporting typically creates additional complexity in the audit process. The timing could potentially lead to further delays in financial statement preparation and review.
The compliance plan submission to Nasdaq is equally significant. Companies that fail to file timely financial reports risk severe consequences, including potential delisting. While Nasdaq often grants extensions when presented with viable compliance plans, this situation signals underlying operational or financial reporting challenges that need resolution.
For investors, these developments present several risk factors:
- Potential further delays in accessing important financial information
- Increased regulatory scrutiny
- Additional costs associated with the auditor transition
- Uncertainty regarding the company's ability to maintain its Nasdaq listing
The combination of an auditor change and compliance issues often indicates deeper organizational challenges. Investors should closely monitor the company's progress in filing its overdue Form 20-F and meeting Nasdaq's requirements within the extension period, if granted.
HONG KONG, Jan. 22, 2025 (GLOBE NEWSWIRE) --
Change of Auditor
On January 22, 2025, Santech Holdings Limited (“the Company”) announced that its Audit Committee has approved the appointment of Audit Alliance LLP (“Audit Alliance”) as the Company’s independent registered public accounting firm. The Audit Committee has dismissed Marcum Asia CPAs LLP (“MarcumAsia”) as its independent registered public accounting firm, effective from November 15, 2024.
The Company’s decision to change auditor was due to significant changes in the Company’s business focuses and scale recently as previously disclosed, and not as a result of any disagreement between the Company and MarcumAsia on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.
The audit services previously provided by MarcumAsia will be provided by Audit Alliance. Audit Alliance is a PCAOB-registered CPA firm headquartered in Singapore.
Other Events: Filing of Compliance Plan with Nasdaq
Additionally, the Company announced that it has submitted a compliance plan to The Nasdaq Stock Market (“Nasdaq”) to support its request for an extension of time to regain compliance with the Nasdaq continued listing requirements.
In its compliance plan to Nasdaq, the Company sets out the plan and timeline to file its Annual Report on Form 20-F for the financial year ended June 30, 2024 and become current with its reporting requirement within the discretionary period available to the Nasdaq staff to grant.
About Santech Holdings Limited
Santech Holdings Limited (NASDAQ: STEC) 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. For more information, please visit https://ir.santechholdings.com.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “forecast,” “plan,” “project,” “potential,” “continue,” “ongoing,” “expect,” “aim,” “believe,” “intend,” “may,” “should,” “will,” “is/are likely to,” “could” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor and Media Contact:
Santech Holdings Limited
Email: ir@santechholdings.com
FAQ
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