ST Kaili announced on the evening of October 9 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 by a vote of 4 in favor and 3 against, appointing Hui Yiwei as chairman. Former chairman Wang Chong remains a director. The proposal was put forward by shareholders holding more than one-tenth of voting rights combined, including Shanghai Kaicheng Juntai Investment Co., Ltd., Lü Xiangdong, Li Hong, Liu Shuangquan, and Wei Yongmei, and was passed by the board. The announcement said the change was based on a major shift in the company's shareholding structure, aiming to improve corporate governance, enhance decision-making efficiency, and promptly eliminate circumstances that triggered the other risk warning. Directors Wang Chong, WEN CHEN, and independent director Zhu Dingmin voted against, citing concerns over Hui Yiwei's independence, competence, management experience, and the stability of the current governance structure. ST Kaili has long had a fragmented shareholding structure with no actual controller, and its largest shareholder, Yongjin Investment Holding Co., Ltd., holds only 7 percent.
Shanghai Kinetic Medical CoShanghai Kaicheng Juntai Investment, a shareholder proposing the chairman change, is named but its own impact is unclear.
Yongjin Investment Holding is noted as ST Kaili's largest shareholder with only 7%, but no direct impact on it is described.
