Santech Holdings Provides Update on Its Board and Senior Management
Santech Holdings (NASDAQ: STEC) announced significant changes to its Board and senior management. The company's Chairman, Mr. Han Hongwei, and CEO, Madame Wang Dian, have been detained and are under investigation by Shanghai authorities for alleged illegal activities at Hywin Wealth Management, a separate entity owned by Mr. Han. In response, the Board has appointed Mr. Lawrence Wai Lok as a new director and acting CEO. Mr. Lok, with over 15 years of experience in investment banking, will review the company's operations and lead its strategic transformation. The Board has also retained independent US counsel for legal advice on securities laws. Santech Holdings emphasizes that it is not associated with the investigation and has not received any official notice from authorities.
Santech Holdings (NASDAQ: STEC) ha annunciato significative modifiche al proprio Consiglio di Amministrazione e alla gestione senior. Il presidente dell'azienda, il sig. Han Hongwei, e il CEO, la signora Wang Dian, sono stati detenuti e sono sotto inchiesta dalle autorità di Shanghai per presunti illeciti presso Hywin Wealth Management, un'entità separata di proprietà del sig. Han. In risposta, il Consiglio ha nominato il sig. Lawrence Wai Lok come nuovo direttore e CEO ad interim. Il sig. Lok, con oltre 15 anni di esperienza nel settore della banca d'investimento, esaminerà le operazioni aziendali e guiderà la trasformazione strategica. Il Consiglio ha anche assunto un avvocato indipendente negli Stati Uniti per ricevere consulenze legali sulle normative relative ai titoli. Santech Holdings sottolinea di non essere associata all'inchiesta e di non aver ricevuto alcuna notifica ufficiale da parte delle autorità.
Santech Holdings (NASDAQ: STEC) anunció cambios significativos en su Junta Directiva y en la alta gestión. El presidente de la empresa, el Sr. Han Hongwei, y la CEO, la Sra. Wang Dian, han sido detenidos y están bajo investigación por las autoridades de Shanghái por supuestas actividades ilegales en Hywin Wealth Management, una entidad separada de la propiedad del Sr. Han. En respuesta, la Junta ha nombrado al Sr. Lawrence Wai Lok como nuevo director y CEO interino. El Sr. Lok, con más de 15 años de experiencia en banca de inversión, revisará las operaciones de la empresa y liderará su transformación estratégica. La Junta también ha contratado a un abogado independiente en EE.UU. para recibir asesoramiento legal sobre leyes de valores. Santech Holdings enfatiza que no está asociada con la investigación y que no ha recibido ninguna notificación oficial de las autoridades.
산텍 홀딩스(NASDAQ: STEC)는 이사회와 고위 경영진에 대한 중요한 변화를 발표했습니다. 회사의 의장인 한 홍웨이 씨와 CEO인 왕 디안 씨는 상하이 당국에 의해 구금되어 조사를 받고 있습니다. 이들은 한 씨 소유의 별도 기관인 하이윈 웰스 매니지먼트에서의 불법 활동과 관련이 있습니다. 이사회는 로렌스 와이 록 씨를 새로운 이사이자 임시 CEO로 임명했습니다. 록 씨는 15년 이상의 투자 은행 경험을 보유하고 있으며, 회사 운영을 검토하고 전략적 변화를 이끌 것입니다. 이사회는 또한 증권법에 대한 법률 자문을 위해 독립적인 미국 변호사를 고용했습니다. 산텍 홀딩스는 자신이 조사와 관련이 없으며 당국으로부터 공식 통지를 받지 않았다고 강조하고 있습니다.
Santech Holdings (NASDAQ: STEC) a annoncé des changements significatifs dans son Conseil d'Administration et sa direction senior. Le président de l'entreprise, M. Han Hongwei, et la PDG, Madame Wang Dian, ont été détenus et sont sous enquête par les autorités de Shanghai pour des activités illégales présumées au sein de Hywin Wealth Management, une entité distincte détenue par M. Han. En réponse, le Conseil a nommé M. Lawrence Wai Lok comme nouveau directeur et CEO par intérim. M. Lok, fort de plus de 15 ans d'expérience en banque d'investissement, examinera les opérations de l'entreprise et dirigera sa transformation stratégique. Le Conseil a également engagé un avocat indépendant aux États-Unis pour des conseils juridiques sur les lois sur les valeurs mobilières. Santech Holdings souligne qu'elle n'est pas associée à l'enquête et qu'elle n'a reçu aucune notification officielle des autorités.
Santech Holdings (NASDAQ: STEC) hat bedeutende Veränderungen in seinem Vorstand und der oberen Führung angekündigt. Der Vorsitzende des Unternehmens, Herr Han Hongwei, und die Geschäftsführerin, Frau Wang Dian, wurden von den Behörden in Shanghai festgenommen und stehen unter Untersuchung wegen mutmaßlicher illegaler Aktivitäten bei Hywin Wealth Management, einer separaten Einrichtung im Besitz von Herrn Han. Als Reaktion darauf hat der Vorstand Herrn Lawrence Wai Lok als neuen Direktor und kommissarischen CEO ernannt. Herr Lok, der über mehr als 15 Jahre Erfahrung im Investment Banking verfügt, wird die Unternehmensabläufe überprüfen und die strategische Transformation leiten. Der Vorstand hat auch einen unabhängigen US-Rechtsbeistand für rechtliche Beratung zu Wertpapiergesetzen beauftragt. Santech Holdings betont, dass es nicht mit der Untersuchung in Verbindung steht und keine offizielle Mitteilung von den Behörden erhalten hat.
- Appointment of experienced investment banker Lawrence Wai Lok as new director and acting CEO
- Retention of independent US counsel for legal advice on securities laws
- Quick action by the Board to address leadership vacuum
- Commitment to upholding good corporate governance practices
- Detention and investigation of Chairman and CEO by Shanghai authorities
- Potential reputational damage due to association with alleged illegal activities
- Disruption in top leadership and potential impact on company operations
- Uncertainty regarding the outcome of the investigation and its impact on the company
The detention of Santech Holdings' Chairman and CEO by Shanghai authorities for alleged illegal activities at Hywin Wealth Management is a significant governance issue. While the company claims no direct involvement, this situation could have serious implications for Santech's operations and investor confidence. The appointment of Mr. Lawrence Wai Lok as acting CEO and Board member is a crucial step towards stability, but questions remain about the extent of the investigation and its potential impact on Santech. The retention of independent US counsel suggests the company is proactively addressing potential legal and regulatory concerns. Investors should closely monitor further developments, as this situation could lead to regulatory scrutiny and potential reputational damage.
This leadership upheaval at Santech Holdings raises red flags about the company's corporate governance practices. The sudden detention of top executives, even if related to a separate entity, casts doubt on their judgment and the company's overall management integrity. The appointment of Mr. Lok and the retention of US counsel are positive steps, but they also highlight the severity of the situation. Investors should be concerned about potential hidden risks and the company's ability to navigate this crisis. The termination of VIE arrangements with Hywin Wealth Management in June 2024 suggests there might have been earlier indications of problems. This event underscores the importance of thorough due diligence and robust governance structures in Chinese companies listed on US exchanges.
The detention of Santech Holdings' top executives could have significant financial implications for the company. While not directly implicated, the company may face increased scrutiny from regulators and investors, potentially leading to higher compliance costs and difficulty in raising capital. The appointment of Mr. Lok, with his investment banking background, suggests a focus on financial stability and potential strategic shifts. However, the uncertainty surrounding the investigation could lead to stock price volatility and impact investor confidence. The company's ability to maintain normal operations and execute its business strategy during this transition will be crucial. Investors should closely monitor upcoming financial reports and any changes in the company's strategic direction under the new leadership.
SHANGHAI, China, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Santech Holdings Limited (NASDAQ: STEC) (the “Company”), a consumer-focused technology company in China, today announced updates to its board of directors (the “Board”) and senior management team. To the Company’s best knowledge, Mr. Han Hongwei, the Chairman of the Board, and Madame Wang Dian, the Chief Executive Officer and a director of the Company, have been detained by, and are currently under investigation by certain branch office of Shanghai Municipal Public Security Bureau with respect to alleged illegal activities at Hywin Wealth Management Co., Ltd. (“Hywin Wealth Management”). As previously announced, the Company terminated its VIE arrangements with Hywin Wealth Management on June 28, 2024. Hywin Wealth Management is a company incorporated in mainland China and wholly owned and controlled by Mr. Han, and is not otherwise related to the Company. Santech Holdings Limited is not associated with this matter, nor has the Company received any official notice from any government authority as of the date of this announcement.
As Mr. Han and Madame Wang are presently unable to fulfill their respective roles as Chairman of the Board and CEO/director of the Company, the Board has appointed Mr. Lawrence Wai Lok to the Board, effective immediately, whereas Ms. Chen Jie and Mr. Joel A. Gallo will continue to serve as independent non-executive directors. The Board has also appointed Mr. Lok to be the acting CEO of the Company. Mr. Lok will immediately review the Company’s business operations and will lead the Company’s strategic transformation going forward.
Prior to joining the Company, Mr. Lok had over 15 years of professional experience as a senior investment banker working in the United States and Hong Kong SAR. Mr. Lok will continue to contribute his expertise and rich experience in corporate finance and international capital markets.
The Board has also retained an independent US counsel to provide legal advice to the Board on US securities laws matters. The Board and the Company are committed to upholding good corporate governance practices and may take any further measures as appropriate to act in the interest of all its shareholders.
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.
Reference is made to the previous announcement of the Company dated June 28, 2024 regarding the Company’s plan for strategic business transformation, including (i) terminating the contractual arrangements with Hywin Wealth Management and Hywin Wealth Management has ceased to be a consolidated entity of the Company thereafter, and (ii) shifting the Company’s business focus towards the technology sector. Despite the fact that Hywin Wealth Management is not currently a subsidiary of nor controlled by the Company, Mr. Han and Madame Wang’s detention and any subsequent potential legal proceedings and enforcement actions against the parties involved may lead to temporary unstable situation in the Company’s board and senior management team and damage the Company’s reputation and brand name and thus resulting in a material adverse effect on the Company’s business and results of operations. Investors are advised to exercise caution when making investment in the Company.
Further information regarding the above 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 Contact:
Santech Holdings Limited
Email: ir@santechholdings.com
Media Contact:
ICR, LLC
Edmond Lococo
Phone: +86 138-1079-1408
Email: SantechPR@icrinc.com
FAQ
Why were Santech Holdings' (STEC) Chairman and CEO detained?
Who has Santech Holdings (STEC) appointed as the new acting CEO?
Is Santech Holdings (STEC) involved in the investigation of Hywin Wealth Management?
What actions has Santech Holdings (STEC) taken in response to the detention of its top executives?
