HB Global changes CEO as annual report delays weigh on company

Highlights

HB Global changes CEO as Shen Hengbao resigns effective 30 Oct amid audit delays after its auditor withdrew.
HB Global’s application to extend its financial year-end deadline to 30 Nov 2026 was rejected by Singapore’s ACRA on 20 and 27 Oct.
For the 18 months ended 30 Jun 2026, HB Global posted a net loss of RMB19.5 million on revenue of RMB116.45 million, while its shares rose 33.33% to two sen on Friday.

This article was translated from the original. Read the original version by our correspondent here.

Leadership transition amid audit issues

The Edge Malaysia reported that HB Global said in a bourse filing on Friday that Shen Hengbao, 64, resigned effective 30 Oct to focus on his responsibilities in the group’s operations in China. He had led the company since 12 Oct 2009 and has more than 28 years of experience in the food processing and export industry.

The transition comes as HB Global missed the 30 Oct deadline to submit its annual report for the financial year ended 30 Jun 2026, after its auditor withdrew from the engagement. The company said on 27 Oct that the withdrawal of UHY Malaysia PLT had affected the completion of the audit and finalisation of the annual report.

Shen’s departure also follows several share disposals over a number of years that reduced his stake in the company. He ceased to be a substantial shareholder in Jul 2021 when his stake fell to 4.615%, while his current holding stands at 1.8%.

Regulatory pressure and impact on performance

In recent years, HB Global has also undergone several changes at board and senior management level. For the financial year ended 31 Dec 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: 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 related to its financial reporting timeline. Its application to Singapore’s Accounting and Corporate Regulatory Authority, ACRA, to change its financial year-end from 30 Jun 2026 to 30 Nov 2026 was rejected on 20 Oct, and a subsequent appeal was also rejected on 27 Oct.

For the 18-month period ended 30 Jun 2026, HB Global reported a net loss of RMB19.5 million on revenue of RMB116.45 million. HB Global shares closed up 0.5 sen, or 33.33%, at two sen on Friday, giving the company a market capitalisation of RM12.9 million, although the stock remains down 50% year to date.

In our earlier coverage of the impact of the 1MDB scandal on corporate governance, we highlighted how failures in controls, audits and checks and balances have broadened the debate over who should be held accountable when organisational reporting and oversight falter. The article also discussed the need to strengthen whistleblower protections and urged internal auditors to move beyond retrospective reviews towards earlier risk detection using data.

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