Technology
Research Solutions Reports Fourth Quarter and Fiscal Year 2024 Results
Published
2 years agoon
By
Reports 18% Revenue Increase, ARR of $17.4 Million and Record Cash Flow
HENDERSON, Nev., Sept. 19, 2024 /PRNewswire/ — Research Solutions, Inc. (NASDAQ: RSSS), a trusted partner providing cloud-based workflow solutions to accelerate research for R&D-driven organizations, reported record financial results for its fourth quarter and full fiscal year ended June 30, 2024.
Fiscal Fourth Quarter 2024 Summary (compared to prior-year quarter)
Total revenue of $12.1 million, a 22% increase.Platform revenue up 86% to $4.3 million. Platform revenue accounted for 35% of the revenue as compared to 23% in the prior year.Annual Recurring Revenue (“ARR”) up 84% to $17.4 million, which includes approximately $12.1 million of B2B recurring revenue and $5.4M of B2C recurring revenue.Gross profit up 44%. Total gross margin improved 710 basis points to 46.5%.Net loss of $2.8 million, or ($0.09) per diluted share, compared to $376,000 or $0.01 per diluted share. The quarter’s result includes a charge of approximately $4.3 million related to increasing the projected earnout for Scite.Adjusted EBITDA of $1.4 million, a 70% improvement and a Company quarterly record, compared to $825,000.Cash flow from operations of $2.0 million, compared to $1.5 million, a 30% improvement.
Fiscal Year 2024 Summary (compared to Fiscal 2023)
Total revenue of $44.6 million, an 18% increase.Platform revenue up 61% to $14.0 million. Transaction revenue increased 5.7% to $30.7 million.Gross profit up 34%. Total gross margin improved 500 basis points to 44.0%.Net loss of $3.8 million, or ($0.13) per diluted share, including the previously mentioned $4.3 million charge and $1.5 million in proxy and acquisition-related expenses, compared to net income of $572,000 or $0.02 per diluted share.Adjusted EBITDA of $2.2 million, which is inclusive of proxy and acquisition-related expenses of $1.4 million, a Company record, compared to $2.0 million.Cash flow from operations of $3.6 million, a Company record, compared to $3.4 million.
“Fiscal 2024 was a transformational year for the Company. We completed two acquisitions which helped position us as a vertical SaaS and AI company, helping researchers throughout their entire workflow. The integration of these acquisitions and our operational execution were meaningful contributors to our 85% year-over-year ARR growth and the double-digit increase in Adjusted EBITDA,” said Roy W. Olivier, President and CEO of Research Solutions. “There are many untapped market opportunities where our highly specialized product offerings can serve as a vital piece of the research process. Overall, we believe we are well-positioned to deliver meaningful ARR growth while expanding Adjusted EBITDA margins, creating long-term value for our shareholders.”
Fiscal Fourth Quarter 2024 Results
Total revenue was $12.1 million, a 22% increase from $10.0 million in the year-ago quarter primarily driven by increased platform revenue versus the prior-year period due to revenue from the Company’s acquisitions as well as organic platform revenue growth.
Platform subscription revenue for the quarter was $4.3 million, an 86% year-over-year increase. The increase was primarily due to the acquisition of Scite, as well as organic growth in the core Article Galaxy platform. The quarter ended with annual recurring revenue of $17.4 million, up 84% year-over-year (see the company’s definition of annual recurring revenue below).
Transaction revenue was $7.9 million, compared to $7.7 million in the fourth quarter of fiscal 2023. The transaction active customer count for the quarter was 1,398, compared to 1,404 customers in the prior-year quarter (see the company’s definition of active customer accounts and transactions below).
Total gross margin improved 710 basis points from the prior-year quarter to 46.5%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, as well as a 70 basis point increase in margins in the transactions business.
Total operating expenses were $5.0 million, compared to $3.7 million in the fourth quarter of 2023. The increase was primarily related to the additional cost base associated with the aforementioned acquisitions, as well as increased non-cash depreciation and amortization expense related to such acquisitions.
Other expense for the quarter was approximately $3.5 million, compared to other income of $120,000 in the prior-year quarter. The primary driver of this was $4.3M of expense related to increasing the earn-out assumption associated with the Scite acquisition.
Net loss in the fourth quarter was $2.8 million, or ($0.09) per diluted share, compared to net income of $376,000, or $0.01 per diluted share, in the prior-year quarter. Adjusted EBITDA was $1.4 million, compared to $825,000 in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).
Full-Year Fiscal 2024 Results
Total revenue was $44.6 million, an 18% increase from fiscal 2023, driven by both increased platform revenue and transaction revenue.
Platform subscription revenue for fiscal 2024 was $14.0 million, a 61% year-over-year increase. The increase was primarily due to the acquisition of Scite, as well as organic growth in the core Article Galaxy platform.
Transaction revenue was $30.7 million, compared to $29.0 million in fiscal 2023. The increase was driven by organic growth and the impact of a full year of contribution from the acquisition of contracts from FIZ Karlsruhe, compared to six months in fiscal 2023.
Total gross margin improved 500 basis points from the prior-year to 44.0%. The increase was primarily driven by the continued revenue mix shift to the higher-margin Platforms business, as well as a 100 basis point increase in margins in the transactions business related to pricing initiatives.
Total operating expenses for the year were $20.4 million, compared to $14.5 million in fiscal 2023. The increase was primarily related to the additional cost base associated with the acquisitions, including increased non-cash depreciation and amortization expense related to such acquisitions, as well as the aforementioned proxy and acquisition-related expenses.
Net loss for fiscal 2024 was $3.8 million, or ($0.13) per diluted share, compared to net income of $572,000, or $0.02 per diluted share, in the prior-year. Adjusted EBITDA was $2.2 million, compared to $2.0 million in fiscal 2023 (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).
Conference Call
Research Solutions President and CEO Roy W. Olivier and CFO Bill Nurthen will host the conference call, followed by a question and answer period.
Date: Thursday, September 19, 2024
Time: 5:00 p.m. ET (2:00 p.m. PT)
Dial-in number: 1-412-317-5180
The conference call will be broadcast live and available for replay until October 19, 2024 by dialing 1-412-317-6671 and using the replay ID 10191850, and via the investor relations section of the company’s website at http://researchsolutions.investorroom.com/.
Fiscal Fourth Quarter Financial and Operational Summary Tables vs. Prior-Year Quarter
Quarter Ended June 30,
Twelve Months Ended June 30,
2024
2023
Change
% Change
2024
2023
Change
% Change
Revenue:
Platforms
$ 4,277,338
$ 2,303,375
$ 1,973,963
85.7 %
$ 13,956,517
$ 8,683,246
$ 5,273,271
60.7 %
Transactions
$ 7,856,176
$ 7,656,342
199,834
2.6 %
$ 30,667,382
$ 29,020,206
1,647,176
5.7 %
Total Revenue
12,133,514
9,959,717
2,173,797
21.8 %
44,623,899
37,703,452
6,920,447
18.4 %
Gross Profit:
Platforms
3,650,286
2,028,265
1,622,021
80.0 %
11,889,314
7,655,960
4,233,353
55.3 %
Transactions
1,992,580
1,892,278
100,302
5.3 %
7,750,852
7,044,931
705,921
10.0 %
Total Gross Profit
5,642,866
3,920,543
1,722,323
43.9 %
19,640,166
14,700,891
4,939,274
33.6 %
Gross profit as a % of revenue:
Platforms
85.3 %
88.1 %
-2.7 %
85.2 %
88.2 %
-3.0 %
Transactions
25.4 %
24.7 %
0.6 %
25.3 %
24.3 %
1.0 %
Total Gross Profit
46.5 %
39.4 %
7.1 %
44.0 %
39.0 %
5.0 %
Operating Expenses:
Sales and marketing
830,195
455,030
375,165
82.4 %
3,442,503
2,285,478
1,157,025
50.6 %
Technology and product development
1,489,491
991,093
498,398
50.3 %
5,442,382
3,742,192
1,700,190
45.4 %
General and administrative
1,917,907
1,649,333
268,574
16.3 %
8,511,697
6,654,012
1,857,685
27.9 %
Depreciation and amortization
311,004
22,163
288,841
1303.3 %
836,271
52,649
783,622
1488.4 %
Stock-based compensation
426,190
585,384
(159,194)
-27.2 %
2,155,461
1,849,906
305,555
16.5 %
Foreign currency translation loss
6,336
(37,743)
44,079
116.8 %
21,395
(121,953)
143,348
117.5 %
Total Operating Expenses
4,981,123
3,665,260
1,315,863
35.9 %
20,409,709
14,462,284
5,947,425
41.1 %
Income (loss) from operations
661,743
255,283
406,460
159.2 %
(769,543)
238,608
(1,008,151)
-422.5 %
Other Income (Expenses):
Other income
(3,451,948)
120,522
(3,572,470)
NM
(2,903,983)
338,617
(3,242,600)
NM
Provision for income taxes
(31,022)
(59)
(30,963)
NM
(113,071)
(5,602)
(107,469)
NM
Total Other Income (Expenses):
(3,482,970)
120,463
(3,603,433)
NM
(3,017,054)
333,015
(3,350,069)
NM
Net income (loss)
$ (2,821,227)
$ 375,746
(3,196,973)
NM
$ (3,786,597)
$ 571,623
(4,358,220)
NM
NM
Adjusted EBITDA
$ 1,405,273
$ 825,087
$ 580,186
70.3 %
$ 2,243,584
$ 2,019,210
$ 224,374
11.1 %
Quarter Ended June 30,
Twelve Months Ended June 30,
2024
2023
Change
% Change
2024
2023
Change
% Change
Platforms:
B2B ARR (Annual recurring revenue*):
Beginning of Period
$ 11,653,063
$ 9,107,681
$ 2,545,382
27.9 %
$ 9,444,130
$ 7,922,188
$ 1,521,942
19.2 %
Incremental ARR
407,139
336,448
70,691
21.0 %
2,616,072
1,521,941
1,094,131
71.9 %
End of Period
$ 12,060,202
$ 9,444,129
$ 2,616,073
27.7 %
$ 12,060,202
$ 9,444,129
$ 2,616,073
27.7 %
Deployments:
Beginning of Period
983
815
168
20.6 %
835
733
102
13.9 %
Incremental Deployments
38
20
18
90.0 %
186
102
84
82.4 %
End of Period
1,021
835
186
22.3 %
1,021
835
186
22.3 %
ASP (Average sales price):
Beginning of Period
$ 11,855
$ 11,175
$ 680
6.1 %
$ 11,310
$ 10,808
$ 502
4.6 %
End of Period
$ 11,812
$ 11,310
$ 502
4.4 %
$ 11,812
$ 11,310
$ 502
4.4 %
B2C ARR (Annual recurring revenue*):
Beginning of Period
$ 4,902,975
$ –
$ 4,902,975
$ –
$ –
$ –
Incremental ARR
460,154
–
460,154
NM
5,363,129
–
5,363,129
NM
End of Period
$ 5,363,129
$ –
$ 5,363,129
NM
$ 5,363,129
$ –
$ 5,363,129
NM
Total ARR (Annualized recurring revenue):
$ 17,423,331
$ 9,444,129
$ 7,979,202
84.5 %
$ 17,423,331
$ 9,444,129
$ 7,979,202
84.5 %
Transaction Customers:
Corporate customers
1,093
1,090
3
0.3 %
1,088
1,012
76
7.5 %
Academic customers
305
314
(9)
-2.9 %
316
304
12
4.0 %
Total customers
1,398
1,404
(6)
-0.4 %
1,404
1,316
88
6.7 %
Active Customer Accounts, Transactions and Annual Recurring Revenue
The company defines active customer accounts as the sum of the total quantity of customers per month for each month in the period divided by the respective number of months in the period. The quantity of customers per month is defined as customers with at least one transaction during the month.
A transaction is an order for a unit of copyrighted content fulfilled or managed in the Platform.
The company defines annual recurring revenue (“ARR”) as the value of contracted Platform subscription recurring revenue normalized to a one-year period. For B2C ARR, this includes the annualized value of monthly subscriptions, meaning their monthly value multiplied by twelve.
Use of Non-GAAP Measure – Adjusted EBITDA
Research Solutions’ management evaluates and makes operating decisions using various financial metrics. In addition to the company’s GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the company’s operating results.
The tables below provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. Adjusted EBITDA is defined as net income (loss), plus interest expense, other income (expense) including any change in fair value of contingent earnout liability, foreign currency transaction loss, provision for income taxes, depreciation and amortization, stock-based compensation, gain on sale of discontinued operations, and other potential adjustments that may arise. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):
Quarter Ended June 30,
Twelve Months Ended June 30,
2024
2023
Change
% Change
2024
2023
Change
% Change
Net Income (loss)
$ (2,821,227)
$ 375,746
$ (3,196,973)
NM
$ (3,786,597)
$ 571,623
$(4,358,220)
NM
Add (deduct):
–
Other income (expense)
3,451,948
(120,522)
3,572,470
NM
2,903,983
(338,617)
3,242,600
NM
Foreign currency translation loss
6,336
(37,743)
44,079
116.8 %
21,395
(121,953)
143,348
117.5 %
Provision for income taxes
31,022
59
30,963
NM
113,071
5,602
107,469
NM
Depreciation and amortization
311,004
22,163
288,841
1303.3 %
836,271
52,649
783,622
1488.4 %
Stock-based compensation
426,190
585,384
(159,194)
-27.2 %
2,155,461
1,849,906
305,555
16.5 %
Gain on sale of disc. ops.
–
–
–
–
–
–
Adjusted EBITDA
$ 1,405,273
$ 825,087
$ 580,186
70.3 %
$ 2,243,584
$ 2,019,210
$ 224,374
11.1 %
About Research Solutions
Research Solutions, Inc. (NASDAQ: RSSS) provides cloud-based technologies to streamline the process of obtaining, managing, and creating intellectual property. Founded in 2006 as Reprints Desk, the company was a pioneer in developing solutions to serve researchers. Today, more than 70 percent of the top pharmaceutical companies, prestigious universities, and emerging businesses rely on Article Galaxy, the company’s SaaS research platform, to streamline access to the latest scientific research and data with 24/7 customer support. For more information and details, please visit www.researchsolutions.com
Important Cautions Regarding Forward-Looking Statements
Certain statements in this press release may contain “forward-looking statements” regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects”, “intends,” “plans,” “believes,” “seeks,” “estimates,” “endeavors,” “strives,” “may,” or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company’s most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Examples of forward-looking statements in this release include statements regarding enhanced product offerings, additional customers, and the Company’s prospects for growth. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company’s filings with the Securities and Exchange Commission.
Research Solutions, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30,
June 30,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
6,100,031
$
13,545,333
Accounts receivable, net of allowance of $68,579 and $85,015, respectively
6,879,800
6,153,063
Prepaid expenses and other current assets
643,553
400,340
Prepaid royalties
1,067,237
1,202,678
Total current assets
14,690,621
21,301,414
Non-current assets:
Property and equipment, net of accumulated depreciation of $922,558 and $881,908,
respectively
88,011
70,193
Intangible assets, net of accumulated amortization of $1,535,310 and $747,355,
respectively ($8,343,056 provisional)
10,764,261
462,068
Goodwill ($13,171,486 provisional)
16,315,888
—
Deposits and other assets
981
1,052
Total assets
$
41,859,762
$
21,834,727
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses
$
8,843,612
$
8,079,516
Deferred revenue
9,023,848
6,424,724
Total current liabilities
17,867,460
14,504,240
Non-current liabilities:
Contingent earnout liability
12,298,114
—
Total liabilities
30,165,574
14,504,240
Commitments and contingencies
Stockholders’ equity:
Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and
outstanding
—
—
Common stock; $0.001 par value; 100,000,000 shares authorized; 32,295,373 and
29,487,508 shares issued and outstanding, respectively
32,295
29,487
Additional paid-in capital
38,089,958
29,941,873
Accumulated deficit
(26,309,246)
(22,522,649)
Accumulated other comprehensive loss
(118,819)
(118,224)
Total stockholders’ equity
11,694,188
7,330,487
Total liabilities and stockholders’ equity
$
41,859,762
$
21,834,727
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations and Other Comprehensive Loss
Years Ended
June 30,
2024
2023
Revenue:
Platforms
$
13,956,517
$
8,683,246
Transactions
30,667,382
29,020,206
Total revenue
44,623,899
37,703,452
Cost of revenue:
Platforms
2,067,203
1,027,286
Transactions
22,916,530
21,975,275
Total cost of revenue
24,983,733
23,002,561
Gross profit
19,640,166
14,700,891
Operating expenses:
Selling, general and administrative
19,573,438
14,409,634
Depreciation and amortization
836,271
52,649
Total operating expenses
20,409,709
14,462,283
Income (loss) from operations
(769,543)
238,608
Other income
333,088
338,617
Change in fair value of contingent earnout liability
(3,237,071)
—
Income (loss) from operations before provision for income taxes
(3,673,526)
577,225
Provision for income taxes
(113,071)
(5,602)
Net income (loss)
(3,786,597)
571,623
Other comprehensive income (loss):
Foreign currency translation
(595)
3,717
Comprehensive income (loss)
$
(3,787,192)
$
575,340
Basic income (loss) per common share:
Net income (loss) per share
$
(0.13)
$
0.02
Weighted average common shares outstanding
28,863,949
26,860,761
Diluted income (loss) per common share:
Net income (loss) per share
$
(0.13)
$
0.02
Weighted average common shares outstanding
28,863,949
29,139,759
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended
June 30,
2024
2023
Cash flow from operating activities:
Net income (loss)
$
(3,786,597)
$
571,623
Adjustment to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
836,271
52,649
Fair value of vested stock options
140,150
375,189
Fair value of vested restricted common stock
1,994,362
1,418,718
Fair value of vested unrestricted common stock
—
68,272
Modification cost of accelerated vesting of restricted common stock
20,949
56,000
Adjustment to contingent earnout liability
3,237,071
—
Changes in operating assets and liabilities:
Accounts receivable
(344,020)
(901,518)
Prepaid expenses and other current assets
(164,579)
(124,314)
Prepaid royalties
135,441
(356,026)
Accounts payable and accrued expenses
560,027
1,337,056
Deferred revenue
921,879
886,198
Net cash provided by operating activities
3,550,954
3,383,847
Cash flow from investing activities:
Purchase of property and equipment
(71,510)
(47,209)
Payment for acquisition of Resolute, net of cash acquired
(2,718,253)
—
Payment for acquisition of Scite, net of cash acquired
(7,305,493)
—
Payment for non-refundable deposit for asset acquisition
—
(297,450)
Net cash used in investing activities
(10,095,256)
(344,659)
Cash flow from financing activities:
Proceeds from the exercise of stock options
—
57,500
Common stock repurchase
(554,202)
(104,250)
Payment of contingent acquisition consideration
(351,649)
(50,509)
Net cash used in financing activities
(905,851)
(97,259)
Effect of exchange rate changes
4,851
229
Net increase (decrease) in cash and cash equivalents
(7,445,302)
2,942,158
Cash and cash equivalents, beginning of period
13,545,333
10,603,175
Cash and cash equivalents, end of period
$
6,100,031
$
13,545,333
Supplemental disclosures of cash flow information:
Cash paid for income taxes
$
113,071
$
5,602
Non-cash investing and financing activities:
Contingent consideration accrual on asset acquisition
$
32,022
$
138,428
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SOURCE Research Solutions, Inc.
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Agentic AIEnterprise AI PlatformsIntelligent ERPAI-powered CRMHuman Capital ManagementIT Service ManagementPredictive AnalyticsAutonomous WorkflowsEnterprise CopilotsIndustry-specific AI Solutions
The company’s vision is to deliver a unified enterprise platform where AI is embedded into every business process, enabling organizations to eliminate operational silos, automate decision-making, increase productivity, and create competitive advantage through intelligent execution. “Zeya represents exactly the type of visionary leader required for the next generation of enterprise software,” said Harvey Nicholson, Chair of Corporate Governance and Member of Integrow’s Board of Directors. “His global experience, deep understanding of enterprise technology, and forward-looking vision for Agentic AI position Integrow to become one of the industry’s most innovative AI-powered enterprise software companies.”
Wayne Gadson, Chair of Growth Strategy, added: “The future belongs to organizations that can execute strategy with intelligence, speed and confidence. Zeya has spent his career helping enterprises achieve exactly that. His appointment marks the beginning of an exciting new chapter for Integrow, our customers and our partners worldwide.” As enterprises face mounting pressure to modernize operations, reduce costs, improve workforce productivity and harness the power of artificial intelligence, Integrow is uniquely positioned to help organizations transform through a single AI-powered enterprise platform that unifies finance, operations, customer engagement, workforce management, projects and service delivery.
“Our mission is simple,” Ottomone concluded. “We don’t believe AI should replace people. We believe AI should elevate people. The organizations that will define the next decade won’t simply adopt AI—they’ll empower every employee to execute better decisions every day. That’s the future Integrow is building.”
About Integrow
Integrow is a global enterprise software company delivering next-generation AI-powered business applications built on Salesforce. The platform unifies ERP, CRM, Human Capital Management, IT Service Management, Project Management, Field Service, Finance and Operations into a single intelligent ecosystem enhanced by Agentic AI.
By embedding artificial intelligence into every workflow, Integrow enables organizations to modernize operations, accelerate innovation, improve decision-making and execute strategy with confidence.
For more information, visit www.integrow.com.
Media Contact
Media Team, Integrow, Inc., 1 855-333-4769, info@integrow.com, www.integrow.com
View original content to download multimedia:https://www.prweb.com/releases/global-ai-leader-and-enterprise-transformation-visionary-zeya-ottomone-appointed-chief-executive-officer-of-integrow-302833033.html
SOURCE Integrow, Inc.
Technology
Lufax Announces Board and Management Changes
Published
16 minutes agoon
July 24, 2026By
SHANGHAI, July 24, 2026 /PRNewswire/ — Lufax Holding Ltd (“Lufax” or the “Company”) (NYSE: LU and HKEX: 6623), a leading financial services enabler for small business owners in China, today announced changes to its board of directors and senior management, effective July 25, 2026.
Ms. Fangfang Cai (“Ms. Cai”), Mr. Shibang Guo (“Mr. Guo”) and Mr. Peifeng Li (“Mr. Li”) have resigned as non-executive directors of the Company and from their respective positions on the Board’s committees. Mr. Tongzhuan Xi (“Mr. Xi”) has resigned as an executive director, the chief financial officer and the authorised representative of the Company (“Authorised Representative”) under Rule 3.05 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (“Hong Kong Listing Rules”), with effect from July 25, 2026. Each of the four directors cited personal work arrangements as the reason for their resignation and confirmed there is no disagreement with the Board and no matter relating to their departure that needs to be brought to shareholders’ attention.
The Company has begun a search for a new chief financial officer. During the transition, the CFO’s duties will be temporarily assumed by the Company’s internal team to ensure continuity of the Company’s financial functions. Mr. Xiang Ji, an executive director and the Company’s chief executive officer, has been appointed as the Authorised Representative, the Company’s designated liaison with the Stock Exchange under the Hong Kong Listing Rules, in place of Mr. Xi, with effect from July 25, 2026.
The Board has appointed Mr. Wai Kin Chim (“Mr. Chim”) as an independent non-executive director for an initial three-year term commencing July 25, 2026.
Mr. Chim, aged 65, has over 40 years of experience in international banking and extensive board experience in Asia Pacific, having worked in Hong Kong, Singapore and Beijing. He specializes in risk management and internal control, with a strong emphasis on corporate governance, credit risk, market risk and capital management.
Mr. Chim served as a loan officer at Standard Chartered Bank, Hong Kong Branch, from October 1985 to August 1988. He was then employed by Bankers Trust Company, Hong Kong Branch, as a vice president of the Asia Credit Department from September 1988 to October 1996. He subsequently served as the managing director and the chief credit officer for Deutsche Bank AG, a company listed on the Frankfurt Stock Exchange under ticker symbol DBK, for Asia Pacific (non-Japan Asia), from October 1996 to November 2006. He joined Bank of China Limited, a company listed on the Main Board of the Stock Exchange under stock code 3988, as the chief credit officer from March 2007 to March 2015.
Mr. Chim was an independent non-executive director of Standard Chartered Bank (China) Limited from October 2015 to October 2017. He served as an independent non-executive director of HDR Global Trading Limited, owner and operator of the BitMEX digital asset trading platform, from February 2021 to February 2022. Mr. Chim served as a non-executive director of China Chengtong Hong Kong Company Limited from July 2022 to June 2025. Mr. Chim is currently an independent non-executive director of OCBC Bank (Hong Kong) Limited, since November 2017; an independent non-executive director of Banco OCBC (Macau), S.A., since August 2023; an independent non-executive director of China Intellogis Technology Co., Ltd., since June 2024; and a director of Hong Kong Dance Company Limited since June 2026.
Mr. Chim obtained a Bachelor of Science degree from the Chinese University of Hong Kong in 1983 and an MBA degree from Indiana State University, USA, in 1985. He also graduated from the Senior Executive Program at Columbia University in 2000.
In connection with these changes, with effect from July 25, 2026, Ms. Cai will step down from the Nomination and Remuneration Committee, and Mr. Koon Wing Ernest Ip has been appointed as a member to that committee. The Company’s Special Committee will comprise Mr. Dicky Peter Yip, Mr. Koon Wing Ernest Ip and Mr. Siu Hong Cheng, continuing under the chairmanship of Mr. Dicky Peter Yip, with effect from July 25, 2026.
The Board would like to take this opportunity to thank Ms. Cai, Mr. Guo, Mr. Li and Mr. Xi for their service during the tenure of their office and warmly welcome Mr. Chim to the Board.
About Lufax
Lufax is a leading financial services enabler for small business owners in China. The Company offers financing products designed principally to address the needs of small business owners. In doing so, the Company has established relationships with 85 financial institutions in China as funding partners, many of which have worked with the Company for over three years.
Investor Relations Contact
Lufax Holding Ltd
Email: Investor_Relations@lu.com
ICR, LLC
Robin Yang
Tel: +1 (646) 308-0546
Email: lufax.ir@icrinc.com
View original content:https://www.prnewswire.com/news-releases/lufax-announces-board-and-management-changes-302834065.html
SOURCE Lufax Holding Ltd
Technology
UMD Smith School Researchers Warn AI Security Lapses Highlight Urgent Need for Independent Oversight
Published
16 minutes agoon
July 24, 2026By
COLLEGE PARK, Md., July 24, 2026 /PRNewswire/ — A series of recent AI security lapses—including the OpenAI–Hugging Face breach—raises a fundamental question, say a pair of researchers at the University of Maryland’s Robert H. Smith School of Business: Can tech companies safely govern the powerful AI systems they build, or is stronger outside oversight now essential?
In its incident report, OpenAI confirmed that one of its experimental AI agents exploited a weakness in its testing environment while working on a routine benchmark task. The system wasn’t instructed to behave maliciously; instead, its persistence turned a small design flaw into a real escape. Earlier tests showed similar behavior, including agents that learned to bypass security checks by manipulating authentication tokens.
This pattern echoes findings from Dean’s Professor of Information Systems Siva Viswanathan at the Smith School, who studies how large technology platforms enforce rules. His research on mobile app privacy—published in Management Science—examined Google’s rollout of Android 6.0, which gave users more control over what data apps could collect. Developers were granted a flexible window to update their apps. Many used that flexibility to delay compliance for months, continuing to gather user data until Google imposed consequences such as lower search rankings and reduced visibility in its app store.
Viswanathan’s takeaway: when companies rely on voluntary compliance, self‑interested actors often exploit the slack. Real accountability requires pairing flexibility with firm, enforceable penalties.
That lesson now reverberates across the AI sector. As companies race to build increasingly capable systems, Viswanathan says oversight must treat these AI systems as strategic actors and must include strong safeguards that can pause or reverse a system before harm occurs.
He notes that a separate study from Anthropic underscores the stakes. In controlled tests, even an AI system designed to monitor another AI inherited the same flaws it was supposed to catch. In some cases, the “judge” model failed to flag clear sabotage because it agreed with the agent’s goals, allowing dangerous behavior to pass without human review.
Balaji Padmanabhan, Dean’s Professor of Decisions, Operations and Information Technologies and director of the Smith School’s Center for Artificial Intelligence in Business, extends Viswanathan’s governance argument into the realm of autonomous AI agents, warning that the same structural weaknesses now carry far higher stakes.
“The fact that this breach occurred organically without the AI agent being asked to be malicious is itself notable. Imagine what someone who actually intends to do harm can do. It’s also not terribly reassuring that the same firms we depend on for AI infrastructure, who are facing these issues, are the ones assuring enterprises that their systems with guardrails are perfectly safe,” says Padmanabhan. “We have to wake up to the fact that we’ve created capabilities that let software become as powerful as we want it to be—and then some. It’s time we seriously ask what’s needed to create an infrastructure to play defense well.”
Across the independent studies, the pattern is consistent, says Viswanathan: Voluntary compliance fails when the governed actor is more capable than the regulator. And AI systems cannot be governed by trust or good intentions alone. Oversight must be preventive, independent and capable of stopping harmful behavior before it spreads.
About the University of Maryland’s Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and flex MBA, executive MBA, online MBA, business master’s, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.
Contact: Greg Muraski, gmuraski@umd.edu
View original content:https://www.prnewswire.com/news-releases/umd-smith-school-researchers-warn-ai-security-lapses-highlight-urgent-need-for-independent-oversight-302834112.html
SOURCE University of Maryland’s Robert H. Smith School of Business
Global AI Leader and Enterprise Transformation Visionary Zeya Ottomone Appointed Chief Executive Officer of Integrow
Lufax Announces Board and Management Changes
UMD Smith School Researchers Warn AI Security Lapses Highlight Urgent Need for Independent Oversight
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