Shanghai Broadband Technology tackles significant fund occupation, governance overhaul

Shanghai Broadband Technology (SSE:600608, *ST Huke) announced a significant outstanding non-operating fund occupation of 348,612,206.20 yuan by its former controlling shareholder, Nanjing Sweet Group, representing 921.63% of the company's net assets. This long-standing issue from 2000-2007, arising from historical transactions and legal disputes, remains unresolved due to the former shareholder's cessation of operations and frozen assets. The company plans to resolve this by publicly transferring all related creditor and contingent liabilities, and discharging all company liabilities, subject to state-owned assets commission approval and shareholder consent.

In response to these challenges, the company's 10th Board of Directors convened, approving a series of significant governance changes. These include the appointment of Zhong Asia-Pacific Certified Public Accountants as the new audit firm for 2025, discontinuing Zhongzhonghuan after 10 years of service. Additionally, the board approved comprehensive revisions to the company's Articles of Association and various internal management systems, including those governing shareholder meetings, board meetings, independent directors, related-party transactions, and investment and financing.

These governance reforms aim to enhance independence, mitigate risks, and streamline operations. Notably, the revised Articles of Association will eliminate the Supervisory Board, with its functions transferred to the Board of Directors' Audit Committee. Shareholders are invited to approve these proposals at the upcoming Second Interim Shareholders' Meeting on December 15, 2025, which will be held both in-person and online. Shanghai Broadband Technology's stock remains subject to "other risk warnings" due to the unresolved fund occupation.