KUALA LUMPUR (Oct 30): HB Global Ltd's (KL:HBGLOB) founder and chief executive officer Shen Hengbao has stepped down after 17 years at the helm, as the loss-making China-based food processor grapples with an auditor withdrawal and delays in filing its annual report.
In a bourse filing on Friday, HB Global said Shen, 64, resigned effective Oct 30 to focus on his responsibilities in the group’s China operations. He had led the company since Oct 12, 2009, and has more than 28 years of experience in the food processing and export industries.
The leadership change comes as HB Global missed the Oct 30 deadline to submit its annual report for the financial year ended June 30, 2026, after its auditor withdrew from the engagement.
The company said on Oct 27 that the withdrawal of UHY Malaysia PLT had affected the completion of its audit and the finalisation of the annual report.
Shen’s departure also follows years of share disposals that have reduced his interest in the company. He ceased to be a substantial shareholder in July 2021, when his stake fell to 4.615%. His shareholding currently stands at 1.8%.
HB Global has undergone several changes to its board and senior management in recent years. During the financial year ended Dec 31, 2024, non-executive chairman Chan Kay Ding, executive director Datuk Kang Hua Keong and non-executive director Lew Seh Li left the board.
They were replaced by three new directors, namely Chin Nyat Fwu, Elizabbeth Siew Wai Kit and Datuk Mohd Hizzat Mohd Shah. Lim Sze Yean was also appointed chief financial officer.
The company has also faced regulatory hurdles over its financial reporting timeline. Its application to Singapore’s Accounting and Corporate Regulatory Authority (ACRA) to change its financial year-end from June 30, 2026 to Nov 30, 2026, was rejected on Oct 20. A subsequent appeal was also turned down on Oct 27.
For the 18 months ended June 30, 2026, HB Global reported a net loss of RMB19.5 million on revenue of RMB116.45 million.
HB Global shares closed 0.5 sen or 33.33% higher at two sen on Friday, valuing the company at RM12.9 million. The stock has lost 50% of its value year to date.