Key Developments and Potentially Price-Sensitive Updates

Willas-Array Electronics (Holdings) Limited (“the Company”, together with its subsidiaries, “the Group”) has issued a detailed response to queries from Singapore Exchange Regulation (“SGX RegCo”) regarding changes in its financial reporting oversight arrangements. These queries follow the resignation of Mr. Fan Qinsheng, the former Executive Director who had been overseeing the Group’s finance function in the absence of a Chief Financial Officer (CFO).

1. Change in Financial Oversight Leadership

• Current Leadership: With Mr. Fan’s departure, Mr. Xie Lishu, the existing Executive Director and Chairman of the Board, has assumed responsibility for overseeing the Group’s finance function. His areas of oversight include financial internal control, compliance, external information distribution, risk management, loan refinancing, treasury/cost management, and cash flow management.
• Implication: This leadership change is significant as it concentrates financial oversight and reporting responsibilities with a single executive director, which may impact governance dynamics and risk management processes.

2. Continued Engagement of External Financial Consultant

• Consultant Details: Mr. Lee Lap Keung, a Certified Public Accountant of the Hong Kong Institute of Certified Public Accountants, remains engaged by the Group. His role covers financial reporting, accounting, analysis, tax planning, regulatory compliance, risk management, management accounting, budgeting, and forecasting.
• Reporting Arrangement: Mr. Lee reports directly to Mr. Xie and works with the existing finance team until a permanent CFO is appointed.
• Internal Audit Support: Acclime Consulting (Hong Kong) Limited is engaged to perform internal audit functions, reinforcing the Group’s internal controls and risk management systems.
• Investor Consideration: The reliance on an external consultant and audit firm for key financial controls may be viewed as an interim solution, raising questions about long-term stability and oversight.

3. Search for Permanent CFO: Status and Timeline

• Shortlisted Candidate: The Company has shortlisted a candidate for the CFO role, with credentials and experience currently under review by management.
• Expected Appointment: Subject to nomination committee approval, the Company expects to onboard a suitably qualified CFO by April 2026, with a formal announcement to follow.
• Delay Explanation: The delay in CFO appointment is attributed to the ongoing assessment of candidate qualifications.
• Investor Impact: Prolonged absence of a permanent CFO is a material risk and may influence investor sentiment regarding the Company’s financial governance and operational stability.

4. Assurance on Financial Records and Controls

• FY2024 Assurance: The most recent Annual Report 2024 saw assurance on financial records, risk management, and internal controls provided by Mr. Fan and Mr. Lee.
• Future Assurance: For FY2025, assurance will be provided by Mr. Xie (Executive Director) and Mr. Lee (external financial consultant), as they are currently responsible for overseeing the Group’s finance and reporting functions.
• Board Composition: The Board now comprises one Executive Director (Mr. Xie), one Non-executive Director (Huang Shaoli), and four Independent Non-executive Directors.
• Potential Shareholder Concern: Investors should note that assurance will be provided by only one executive director and the external consultant, which may affect perceptions of internal control robustness and independence.

Key Risks and Considerations for Shareholders

• Leadership Transition: The departure of Mr. Fan and the interim arrangements for financial oversight are significant developments that may impact the Company’s governance and risk profile.
• Absence of Permanent CFO: The continued absence of a permanent CFO introduces operational and reporting risks, and the timing of the appointment is crucial for restoring confidence.
• Reliance on External Parties: Heavy reliance on an external financial consultant and audit firm may raise concerns about sustainability, independence, and continuity of financial controls.
• Upcoming Announcements: The planned onboarding of a new CFO by April 2026 and the release of FY2025 audited financial statements by end-February 2026 are important milestones, both of which may affect share price depending on the outcomes.

Conclusion

The Company is navigating a period of transition in its financial oversight and reporting functions. Shareholders should monitor the progress of the CFO appointment, assess the effectiveness of interim controls, and stay alert for further announcements regarding financial governance. These developments are material and could influence share price depending on investor perception of the Company’s risk management and operational stability.

Disclaimer: This article is based on official company disclosures and responses to regulatory queries as of January 20, 2026. Investors are advised to exercise their own judgment and consult financial advisors before making investment decisions. The information provided does not constitute financial advice or a recommendation to buy or sell securities.

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