HONG KONG, May 13, 2025 (GLOBE NEWSWIRE) -- Santech Holdings Ltd. (“Santech” or the "Company") (NASDAQ: STEC) today announced that it has filed its annual report containing its audited combined financial statements for the fiscal year ended June 30, 2024 on Form 20-F with the Securities and Exchange Commission (the "SEC") on May 13, 2025 Eastern Time. The annual report can be accessed on Santech’s investor relations website at https://ir.santechholdings.com and on the SEC's website at http://www.sec.gov. Th ...

Financial Performance - Santech's total revenues for the year ended June 30, 2024, were $28.023 million, a 51% increase from $18.584 million in 2023[35]. - The company reported a net loss of $743,000 for the year ended June 30, 2024, compared to a net loss of $3.469 million in 2023, indicating a significant reduction in losses[35]. - Cash and cash equivalents increased to $15.184 million as of June 30, 2024, up from $12.620 million in 2023[36]. - Total operating costs and expenses for the year ended June 30, 2024, were $28.259 million, compared to $22.218 million in 2023, reflecting a 27% increase[35]. - Santech's accumulated deficit increased to $30.700 million as of June 30, 2024, from $29.957 million in 2023[33]. - The company reported a significant increase in compensation and benefits expenses, which rose to $17.259 million in 2024 from $6.486 million in 2023[35]. - Santech's total assets decreased to $16.742 million as of June 30, 2024, down from $17.354 million in 2023[33]. - The primary source of revenue for the company has shifted to distribution commissions from financial products, which were the main revenue source for the years ended June 30, 2022, 2023, and 2024[165]. - Wealth management services accounted for 86.0% of total revenues in 2024, up from 84.1% in 2023, indicating a strong focus on this segment[225]. - The company’s asset management services generated revenues of US$3,919,000 in 2024, a slight increase from US$2,952,000 in 2023, but a decrease in percentage contribution to total revenues[225]. Business Strategy and Operations - Santech terminated its contractual arrangements with Hywin Wealth Management on June 28, 2024, effectively ceasing operations in China[30]. - The company has repositioned itself to focus on consumer technology, consumer healthcare, and enterprise technology, phasing out its previous wealth and asset management services[30]. - The company has exited the wealth management and asset management businesses in the PRC as of June 28, 2024, which may impact future performance[48]. - The company is repositioning to become a technology company, focusing on consumer technology, consumer healthcare, and enterprise technology, but currently has no operational products in these sectors[49]. - The company has phased out its overseas wealth management and asset management services and is only providing customer service to historical clients[166]. - The company has ceased seeking new business in overseas wealth management and asset management services, shifting focus to consumer technology, consumer healthcare, and enterprise technology[219]. Risks and Challenges - The company may face significant risks related to manufacturing and supply chain management, which could affect product supply and service delivery[55]. - The company may need to rely on third-party intellectual property, which may not be available on commercially reasonable terms, potentially impacting product offerings[56]. - The company may face challenges in recruiting and retaining skilled personnel necessary for its new business strategies in technology sectors[54]. - The company’s historical financial results may not be indicative of future performance due to the significant restructuring and exit from previous business lines[48]. - The company’s reputation and brand recognition are crucial, and any harm could materially affect its business and financial condition[47]. - The company may face legal liabilities related to breaches of fiduciary duties in its historical asset management services, despite exiting those businesses[74]. - The company faces risks related to the privacy and confidentiality of client information, which are critical to its reputation and operations[78]. - The company has identified deficiencies in tax matter handling and reporting, which could harm its financial performance[68]. - The company may experience significant price and volume fluctuations due to variations in revenues, earnings, and user engagement data[125]. - The trading price of the company’s ADSs is likely to be volatile, influenced by market factors and the performance of other Chinese or Hong Kong companies[122]. Regulatory Environment - The evolving legal environment in China presents uncertainties that could adversely affect the company's compliance and operational stability[96][97]. - The PRC government has increased regulatory oversight in areas such as anti-monopoly, cybersecurity, and data privacy, which may significantly impact the company's operations and compliance costs[99]. - The SEC has implemented rules requiring foreign companies to certify they are not controlled by foreign governments if their auditors cannot be inspected, which could impact the company's ability to trade its securities[109]. - The Overseas Listing Trial Measures require Chinese companies to file with the CSRC for any overseas offerings, imposing additional reporting obligations that could lead to penalties if not complied with[117]. - Non-compliance with SAFE registration may result in fines and restrictions on profit distribution from PRC subsidiaries[197]. Corporate Governance - The chairman of the board, Mr. Lawrence Wai Lok, controls 66.67% of the outstanding share capital, allowing him significant influence over corporate decisions[77]. - The company is classified as a foreign private issuer, exempting it from certain U.S. securities regulations applicable to domestic issuers[151]. - The company may face difficulties in protecting shareholder interests due to the governance structure under Cayman Islands law[142]. - The company is permitted to adopt home country practices in corporate governance that may afford less protection to shareholders compared to Nasdaq Capital Market requirements[154]. Internal Controls and Compliance - Material weaknesses in internal control over financial reporting have been identified, including insufficient resources and lack of monitoring mechanisms, which could lead to inaccuracies in financial statements[84][85]. - The company has hired experienced personnel and is enhancing internal controls through technology adoption and training to address identified weaknesses[86]. - The company has established an internal compliance system to supervise service quality and regulatory compliance, but risks of misconduct remain[70]. Client and Market Dynamics - The number of active clients in overseas wealth management increased to 478 in 2024 from 885 in 2023, reflecting a decline due to disruptions in brand and operations[223]. - The company reported 545, 1,265, and 821 clients for the years ended June 30, 2022, 2023, and 2024, with active clients in wealth management services decreasing significantly due to disruptions in operations[171]. - The competitive landscape for consumer technology, healthcare, and enterprise technology is characterized by aggressive price competition and rapid technological advancements[175].

HONG KONG, March 19, 2025 (GLOBE NEWSWIRE) -- On March 17, 2025, Santech Holdings Limited (NASDAQ:STEC) (the "Company"), entered into a share subscription agreement and raised additional capital to fund its current operations. Pursuant to the share subscription agreement, the Company will issue to Carmel Holdings Limited 112,000,000 restricted ordinary shares of the Company (the "Subscription Shares") for a total consideration of approximately US$1.0 million. With the approval of all independent directors o ...

HONG KONG, March 12, 2025 (GLOBE NEWSWIRE) -- Santech Holdings Limited (NASDAQ: STEC) (“Santech” or the “Company”) announced today that it received a notification from The Nasdaq Stock Market LLC (“NASDAQ”) 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. About Santech Holdings Limited Santech Holdings Limited (NASDAQ: STEC) is a consumer-focused technology company. The Company historically serve ...

Corporate Governance Changes - Santech Holdings Limited announced changes to its Board of directors and senior management to enhance corporate governance and bring additional expertise [1][3] - Mr. Han Hongwei and Madame Wang Dian were removed from their positions due to their inability to fulfill their duties [2] - Lawrence Wai Lok has been appointed as Chairman of the Board and Chief Executive Officer, effective immediately, to lead the company's restructuring and strategic transformation [2][7] New Appointments - Two new Independent Directors have been appointed: Mr. Howard Chan and Mr. Geoffrey Kam, effective immediately [3] - Mr. Howard Chan, a Certified Public Accountant, has extensive experience in corporate finance and transaction advisory, previously serving at Jones Lang LaSalle and Ernst and Young [4] - Mr. Geoffrey Kam, a solicitor with broad litigation experience, is currently a Consultant at Messrs. Boase Cohen & Collins and has served in various public bodies in Hong Kong [6] Audit Committee Composition - The Audit Committee of the Board is now comprised entirely of independent directors: Janet Chen, Joel Gallo, and Howard Chan [5] Company Overview - Santech Holdings Limited is a consumer-focused technology company that has historically served high net-worth clients in China in financial services and health management [7] - The company has exited its historical financial services businesses and is exploring innovative opportunities in technology, including new retail, social e-commerce, and the metaverse [7]

Core Viewpoint - Santech Holdings Limited has received an extension from Nasdaq to file its Annual Report on Form 20-F for the fiscal year ended June 30, 2024, now due by May 14, 2025, after previously being notified of non-compliance with listing rules [1][2][3]. Group 1: Compliance and Filing Details - Nasdaq granted Santech an exception to Listing Rule 5250(c)(1), allowing an extension for the filing of its Annual Report [1][3]. - Santech was initially given a 60-day period to submit a plan to regain compliance, with a deadline of January 21, 2025 [2]. - The company has submitted a compliance plan and is required to file the Annual Report by May 14, 2025, or face potential delisting [3][4]. Group 2: Company Background - Santech Holdings Limited is a consumer-focused technology company that has transitioned from financial services to exploring new opportunities in technology, including new retail, social e-commerce, and the metaverse [5].

Group 1: Change of Auditor - The Company has appointed Audit Alliance LLP as its independent registered public accounting firm, effective January 22, 2025, after dismissing Marcum Asia CPAs LLP, effective November 15, 2024 [1][2] - The decision to change auditors was due to significant changes in the Company's business focuses and scale, not due to any disagreements with MarcumAsia regarding accounting principles or practices [2] Group 2: Compliance Plan with Nasdaq - The Company has submitted a compliance plan to Nasdaq to request an extension of time to regain compliance with continued listing requirements [3] - The compliance plan outlines the timeline for filing its Annual Report on Form 20-F for the financial year ended June 30, 2024, and aims to become current with its reporting requirements within the discretionary period granted by Nasdaq [4] Group 3: Company Overview - Santech Holdings Limited (NASDAQ: STEC) is a consumer-focused technology company that has historically served high net-worth clients in China in financial services and health management [5] - The Company has exited its historical financial services businesses and is exploring new opportunities in technology, including new retail, social e-commerce, and the metaverse [5]