Santech reports chairman Han Hongwei, CEO Wang Dian have been detained

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.