BRIEF: New Horizon Health announces chairman’s departure

Cancer-screening device maker New Horizon Health Ltd. (6606.HK) announced on Tuesday that Zhu Yeqing has stepped down as the company’s chairman and CEO for health reasons. The board has appointed non-executive director Yao Naxin to replace Zhu as chairman and as the company’s authorized representative.

The board stated that Zhu’s management style and philosophy differed sharply from those of other board members, and thus his continued presence would not align with the company’s overall best interests. The board has also resolved to convene a special general meeting of shareholders to remove Zhu from his position as an executive director.

New Horizon Health issued a positive profit alert in January, saying its 2023 revenue totaled 2.01 billion yuan ($275 million), a 25-fold increase compared to 2020. But those strong results were challenged last year by U.S. financial website CapitalWatch, which questioned the authenticity of the company’s sales.

In March this year, New Horizon’s auditor, Deloitte, said an independent investigation into the company’s financial data was needed. New Horizon was subsequently unable to publish its annual report for 2023 and trading in its shares was suspended. Both the company’s CFO and its auditor, Deloitte, resigned in September.

By Lee Shih Ta

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