Inno Holdings Inc. (NASDAQ:INHD), a Texas-based steel tube and pipe manufacturer, today announced significant changes to its executive team and board of directors. The company accepted the resignation of Tianwei Li as CEO, although he will continue to serve as CFO and director. Li’s departure from the CEO position was not due to any operational or financial disagreements.
At the same time, the company announced the resignation of Li Gong, who served as chief operating officer, and Ying Liu, who resigned as president and director of the board of directors. Chen Sung also resigned from his position as director. Like Li, the resignations of Gong, Liu and Sung were not due to disagreements over the company’s operations or practices.
Following these departures, the Board appointed Ding Wei as the new CEO, President and Director, effective today. Wei, 44, brings experience from his roles as founder, chairman and CEO of Yangzhou Ruide Fei Technology Co., Ltd. and Yangzhou Yu Chen Saiwen Information Consulting Co., Ltd. He has a bachelor’s degree in computer science and information systems . .
As part of the executive restructuring, Yufang Qu was appointed to the board of directors to fill the vacancy left by Chen Sung. Qu, 58, previously worked as an accountant for Shuangyashan Shijixing Construction Engineering Co., Ltd. and has a bachelor’s degree in financial accounting. He is expected to serve on the Compensation Committee and the Audit Committee.
The company revealed that Tianwei Li will receive a monthly salary of $10,000 for his ongoing duties, while Ding Wei will have an annual salary of $60,000 as CEO. Yufang Qu will receive compensation of $10,000 per quarter for her service as a non-employee director.
In other recent news, Texas-based INNO Holdings Inc. reported a one-for-ten reverse common stock split. This strategic decision was officially enacted with the Texas Secretary of State, and tight split trading of the company’s common stock will soon begin. The reverse stock split is designed to consolidate every ten shares of common stock issued and outstanding prior to the split into one post-split share, without altering the number of authorized shares or the par value of the common shares.
This measure aims to affect all shareholders uniformly, maintaining their percentage of participation in the company, except for small adjustments due to fractional rounding of shares. The change will be automatically reflected for shareholders who hold shares in electronic format at brokerage firms. INNO Holdings has clarified that the reverse stock split is being implemented to regain compliance with Nasdaq’s continuous listing standards.
Like any forward-looking statement, 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 data from InvestingPro, INHD’s market capitalization sits at a modest $7.68 million, with the share price just 2.1% away from its 52-week high. The company’s revenue for the trailing twelve months to Q3 2024 was $0.69 Million, showing a significant decline with a revenue growth of -52.9% during the same period.
InvestingPro advice highlights that INHD is “burning through cash rapidly” and “has not been profitable over the past twelve months”, which may explain the need for a leadership overhaul. The company’s financial health is further affected by weak gross profit margins, as another tip from InvestingPro indicates. These insights provide context to the executive changes and suggest that the new leadership team faces significant challenges in turning around the company’s performance.
For investors considering INHD, it is worth noting that InvestingPro offers 13 additional tips that could provide more insight into the company’s financial condition and prospects. These additional tips could be especially valuable considering the recent management restructuring and the company’s current financial status.
This article was generated with the support of AI and reviewed by an editor. For more information consult our T&C.