STEC News & Events

Santech Holdings announced that it received a notification from The Nasdaq Stock Market confirming the Company has regained compliance with NASDAQ's minimum bid price requirement under Listing Rule 5550(a)(2). NASDAQ noted this matter is now closed.

Santech announced that its audit committee has approved the appointment of Audit Alliance as the company's independent registered public accounting firm. The audit committee has dismissed Marcum Asia CPAs as its independent registered public accounting firm, effective from November 15, 2024. The company said its 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. Additionally, the company announced that it has submitted a compliance plan to 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.

Santech Holdings announced updates to its board of directors and senior management team. To the Company's best knowledge, Mr. Han Hongwei, the Chairman of the Board, and Madame Wang Dian, the CEO 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. 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. Lok had over 15 years of professional experience as a senior investment banker working in the United States and Hong Kong SAR. The Board has also retained an independent US counsel to provide legal advice to the Board on US securities laws matters.