Datapulse Technology Faces Challenges Amid Executive Turnover and Watch-List Status
Datapulse Technology Faces Challenges Amid Executive Turnover and Watch-List Status
Datapulse Technology Limited, a company incorporated in Singapore, has recently responded to a series of queries from shareholders and the Securities Investors Association (Singapore) (SIAS). The primary concerns revolve around the company’s high executive turnover, dividend policy, asset management agreements, and its status on the SGX financial watch-list.
High Executive Turnover
Shareholders have expressed concern over the resignation of key executives, including the CEO and CFO, within short tenures. The company had seen the departure of the former CEO, Mr. Yee Chia Hsing, and CFO, Ms. Yeo Sock Koon, both of whom served for less than a year. The company announced these resignations in accordance with SGX regulations and has appointed Ms. Tan Hong Ean as the financial controller as of July 2024. Mr. Ang Kong Meng, holding a 77.27% share, has been redesignated as the executive chairman and CEO, raising concerns about a concentration of power.
Dividend Policy Concerns
Despite reporting a profit and having cash reserves, Datapulse did not declare a dividend, which has raised questions from shareholders. The company reiterated its commitment to declaring dividends when it aligns with the best interests of the group and complies with applicable laws.
Asset Management Agreement Expiration
The expiration of the asset management agreement with TLHS entities, which was not renewed, has prompted inquiries regarding its impact. The company has disclosed all necessary information about this expiration and will announce further developments as needed.
SGX Financial Watch-List Status
Datapulse was placed on the SGX financial watch-list in June 2023. The company is required to meet specific criteria to exit the watch-list within 36 months or face potential delisting. The company has shown improved financial performance, returning to profitability in FY2024, with revenue and profit increases. The board is focused on improving profitability and maintaining a strong balance sheet.
Governance and Succession Planning
With the redesignation of Mr. Ang as the executive chairman and CEO, the board has assured shareholders that governance structures with checks and balances are in place. The company is committed to upholding the highest standards of corporate governance and is actively reviewing succession planning measures.
Conclusion
Datapulse Technology Limited is navigating through significant challenges, including executive turnover, dividend policy concerns, and its status on the SGX watch-list. How the company addresses these issues could potentially impact its market value and shareholder confidence.
Disclaimer: This article is based on responses provided by Datapulse Technology Limited and reflects the company’s current status and strategies. Investors should conduct their own research and consider professional advice before making investment decisions.
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