Shanghai Kinetic Medical Co

ST Kaili announced on October 10 that the company held the 22nd meeting of its sixth board of directors by telecommunication on October 7, and approved the proposal to change the company's chairman with 4 votes in favor and 3 against, appointing Hui Yiwei as chairman. Former chairman Wang Chong remains a director. The proposal was jointly submitted by shareholders representing more than one-tenth of voting rights: Shanghai Kaicheng Juntai Investment Co., Ltd., Lü Xiangdong, Li Hong, Liu Shuangquan, and Wei Yongmei. The stated reason was that the company's shareholding structure has undergone major changes, and the move aims to improve corporate governance, enhance decision-making efficiency, and eliminate as soon as possible the circumstances that led to the company being subject to other risk warnings. Directors Wang Chong, WEN CHEN, and independent director Zhu Dingmin, who voted against, raised questions. Wang Chong doubted whether Hui Yiwei could safeguard the interests of all shareholders when conflicts arise between shareholder interests and the interests of the appointing institution, and mentioned that the process and authority for selecting a new general manager at the wholly owned subsidiary Elliquence, LLC were very unclear. WEN CHEN believed Hui Yiwei had obvious deficiencies in work experience, background, and corporate management experience, and proposed that the board should promptly replace the general manager. Zhu Dingmin said the company is in the stage of submitting supplementary materials for its application to remove the other risk warning, and the governance structure should remain stable. ST Kaili submitted its application to the Shenzhen Stock Exchange on April 17, 2026, to remove the other risk warning, but as of the latest progress announcement on September 29, the application was still in the supplementary materials stage, and whether it can be approved remains uncertain. In terms of performance, the 2026 interim report showed that ST Kaili achieved operating revenue of 360 million yuan in the first half of the year, down 34.03 percent year on year; net profit attributable to shareholders of the listed company was 134 million yuan, up 205.72 percent year on year; and non-GAAP net profit was 75.55 million yuan, up 123.75 percent year on year.