Inno Holdings Inc. (NASDAQ:INHD), a Texas-based steel pipe and tubes manufacturer, announced significant changes to its executive team and board of directors today. The company accepted the resignation of Tianwei Li as Chief Executive Officer, though he will continue serving as Chief Financial Officer and a director. Li's departure from the CEO role was not due to any operational or financial disagreements.
Concurrently, the company announced the resignation of Li Gong, who served as Chief Operations Officer, and Ying Liu, who stepped down as Chairwoman and a director of the Board. Chen Sung also resigned from his position as a director. Like Li, the resignations of Gong, Liu, and Sung were not due to any disagreements on company operations or practices.
Following these departures, the Board appointed Ding Wei as the new Chief Executive Officer, Chairman, and Director, effective today. Wei, 44, brings experience from his roles as founder, chairman, and general manager of Yangzhou Ruide Fei Technology Co., Ltd. and Yangzhou Yu Chen Saiwen Information Consulting Co., Ltd. He holds a bachelor's degree in computer science and information systems.
As part of the executive restructuring, Yufang Qu was appointed to the Board to fill the vacancy left by Chen Sung. Qu, 58, previously served as an accountant for Shuangyashan Shijixing Construction Engineering Co., Ltd. and holds a bachelor’s degree in financial accounting. She is expected to serve on the Compensation Committee and Audit Committee.
The company disclosed that Tianwei Li will receive a monthly salary of $10,000 for his continued roles, while Ding Wei will have an annual salary of $60,000 as CEO. Yufang Qu will be compensated with $10,000 per quarter for her service as a non-employee director.
In other recent news, Texas-based INNO Holdings Inc. has reported a one-for-ten reverse stock split of its common stock. This strategic decision was officially enacted with the Secretary of State of Texas, with the split-adjusted trading of the company's common stock set to start soon. The reverse stock split is designed to consolidate every ten pre-split shares of issued and outstanding common stock into one post-split share, without altering the number of authorized shares or the par value of the common stock.
This move aims to affect all shareholders uniformly, maintaining their percentage ownership in the company, barring minor adjustments due to fractional shares rounding. The change will be automatically reflected for stockholders with shares in electronic form at brokerage firms. INNO Holdings has clarified that the reverse stock split is being implemented to regain compliance with Nasdaq's continued listing standards.
As with any forward-looking statements, this action is subject to various risks and uncertainties, as detailed in the company's filings with the Securities and Exchange Commission.
InvestingPro Insights
Inno Holdings Inc.'s recent leadership changes come at a challenging time for the company, as reflected in its financial metrics and stock performance. According to InvestingPro data, INHD's market capitalization stands at a modest $7.68 million, with the stock price at just 2.1% of its 52-week high. The company's revenue for the last twelve months as of Q3 2024 was $0.69 million, showing a significant decline with a revenue growth of -52.9% over the same period.
InvestingPro Tips highlight that INHD is "quickly burning through cash" and "not profitable over the last twelve months," which may explain the need for a leadership overhaul. The company's financial health is further strained by weak gross profit margins, as indicated by another InvestingPro Tip. These insights provide context to the executive changes and suggest that the new leadership team faces significant challenges in turning the company's performance around.
For investors considering INHD, it's worth noting that InvestingPro offers 13 additional tips that could provide further insights into the company's financial situation and prospects. These additional tips could be particularly valuable given the recent management shake-up and the company's current financial state.
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