Technology
Flotek Surpasses 2024 Annual Guidance with Strong Fourth Quarter and Full-Year Results
Published
1 year agoon
By
HOUSTON, March 10, 2025 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced operational and financial results for the fourth quarter and full-year ended December 31, 2024. Fourth quarter 2024 results were the strongest quarterly results of 2024 in terms of revenue, gross profit, net income and adjusted EBITDA (1).
Financial Summary (in thousands, except ‘per share’ amounts)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Total Revenues
$ 50,758
$ 42,188
$ 187,025
$ 188,058
Gross Profit
$ 12,277
$ 9,430
$ 39,386
$ 24,263
Net Income
$ 4,429
$ 2,104
$ 10,498
$ 24,713
Diluted Income (Loss) Per Share
$ 0.14
$ 0.07
$ 0.34
$ (0.10)
Adjusted EBITDA (1)
$ 7,023
$ 3,952
$ 20,327
$ 1,488
Full-Year and Fourth Quarter 2024 Highlights
Q4 2024 total revenue rose 20% vs. Q4 2023, led by a 21% jump in external customer revenue—the highest in 5 years.Data analytics service revenue grew 124% vs. Q4 2023 and 44% vs. full year 2023.Gross profit climbed 30% vs. Q4 2023 and 62% vs. full year 2023, with Q4 2024 gross margin rising to 24%.Q4 2024 net income was $4.4 million and adjusted EBITDA(1) totaled $7.0 million, up 111% and 78%, respectively, vs Q4 2023.2024 net income hit $10.5 million or $0.34/share, vs. a loss of $(0.10)/share in 2023.2024 adjusted EBITDA(1) reached $20.3 million, up $18.8 million from 2023—the highest since 2017—exceeding guidance of $18.5 million by 10%.
Management Commentary
Chief Executive Officer Dr. Ryan Ezell commented, “2024 marks a significant step in the execution of our corporate strategy towards the convergence between innovative Data and Chemistry solutions that deliver outstanding value to our customers and external stakeholders. This year, we not only achieved the highest profitability metrics in nearly a decade but did so through superior operational efficiency and service quality execution. Additionally, our commitment to safety has shone through, with no lost-time incidents recorded in the past three years.
We’ve expanded our technology portfolio with the introduction of three cutting-edge Data Analytics solutions: VeraCal, JP3 Raman, and XSPCT, systems specifically designed to address the unique challenges of the energy and infrastructure sector while driving high-margin growth into 2025 and beyond. In the fourth quarter, we observed a significant transformation in our Data Analytics revenue resulting in a 67% sequential increase in service revenue furthering the shift from products to services.
Looking ahead, we expect that the integration of Data and Chemistry at Flotek will provide exciting new innovations in the energy and infrastructure market. These advancements are set to empower our customers’ assets to maximize returns, reduce costs, automate processes, and leverage data in ways previously unimaginable. We believe that our relentless pursuit to leverage chemistry as the common value creation platform will position Flotek as a leader in differentiated technologies and foster our future growth.”
Fourth Quarter and Full-Year 2024 Financial Results
Revenue: Flotek reported total revenues of $50.8 million for fourth quarter 2024, an increase of $8.6 million, or 20%, compared to total revenues of $42.2 million for fourth quarter 2023. Full-year 2024 total revenues totaled $187.0 million, as compared to total revenues of $188.1 million during 2023. Fourth quarter and full year 2024 revenues include $8.6 million and $32.4 million, respectively, related to the minimum purchase requirements under the Company’s long-term supply agreement with ProFrac Services, LLC.
Segment Revenue Summary (in thousands)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Chemistry Technologies:
External Revenues
$ 21,071
$ 17,996
$ 63,214
$ 59,016
Related Party Revenues
27,215
22,769
114,947
120,903
Total
$ 48,286
$ 40,765
$ 178,161
$ 179,919
Data Analytics:
Product Revenues
$ 826
$ 688
$ 4,745
$ 5,277
Service Revenues
1,646
735
4,119
2,862
Total
$ 2,472
$ 1,423
$ 8,864
$ 8,139
Gross Profit: The Company generated gross profit of $12.3 million during fourth quarter 2024 compared to a gross profit of $9.4 million during fourth quarter 2023. The improvement in fourth quarter 2024 gross profit was primarily the result of successful initiatives throughout 2024 to drive cost reductions with respect to freight, logistics and materials combined with an 18% increase in chemistry revenue and a 74% increase in data analytics revenue, as compared to fourth quarter 2023.
The Company generated gross profit of $39.4 million for full-year 2024 compared to gross profit of $24.3 million for full-year 2023.Selling, General and Administrative (“SG&A”) Expense: SG&A expense totaled $6.6 million for the fourth quarters of 2024 and 2023. SG&A expense totaled $24.7 million for full-year 2024 compared to $27.8 million for full-year 2023, an 11% reduction year-over-year. Excluding non-cash stock compensation expense, 2024 SG&A expense is 17% lower than 2023.Net Income (Loss) and EPS: Flotek reported net income of $4.4 million, or $0.14 per diluted share, for the fourth quarter 2024. This compares to net income of $2.1 million, or $0.07 per diluted share, for the fourth quarter 2023. Net income for full-year 2024 was $10.5 million, or $0.34 per diluted share, compared to net income (loss) of $24.7 million, or ($0.10) per diluted share, for the comparable period of 2023. Net income for full-year 2023 included non-cash gains related to the fair value measurement of convertible notes payable and a PPP loan forgiveness totaling $34.5 million.Adjusted EBITDA (Non-GAAP)(1): Adjusted EBITDA(1) was $7.0 million in fourth quarter 2024 as compared to $4.0 million in fourth quarter 2023. Adjusted EBITDA(1) was $20.3 million for full-year 2024 compared to $1.5 million for full-year 2023.
(1)
See the “Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings” section in this release for more information, including reconciliations to the most comparable GAAP measures.
2025 Guidance
Consistent with 2024 and 2023, Flotek plans to issue 2025 guidance in conjunction with the release of its first quarter 2025 financial and operating results.
Upcoming Investor Event
Flotek will participate in the 37th Annual Roth Conference to be held at the Marriott in Laguna Dana Point, California, March 17-18, 2025. Flotek Chief Executive Officer, Ryan Ezell, will participate in an industry panel discussion on March 17 at 10:00 a.m. PT and will be joined by Chief Financial Officer, Bond Clement, in hosting one-on-one meetings during the event. An updated corporate presentation to be used in discussions at the conference will be posted to the Investor Relations section of Flotek’s corporate website at www.flotekind.com prior to the start of the conference.
Conference Call Details
Flotek will host a conference call on March 11, 2025, at 9:00 a.m. CT (10:00 a.m. ET) to discuss its fourth quarter and full-year 2024 results. Participants may access the call through Flotek’s website at www.flotekind.com under “News” within the Investor Relations section, by telephone toll free at 1-800-836-8184 (international toll: 1-646-357-8785), or by using the following link to access the audience view of the webcast at https://app.webinar.net/qDjWg9qga1Y approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company’s website.
An updated corporate presentation that will be referenced on the call will be posted to the Investor Relations section of Flotek’s website at www.flotekind.com prior to the start of the earnings conference call.
About Flotek Industries, Inc.
Flotek Industries, Inc. is a leading chemistry and data technology company focused on servicing the Energy industry. The Company’s top tier technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 130 patents, 20+ years of field and laboratory data, and a global presence in more than 59 countries.
Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.
Flotek is based in Houston, Texas and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
FLOTEK INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$ 4,404
$ 5,851
Restricted cash
102
102
Accounts receivable, net of allowance for credit losses of $447 and $745 at
December 31, 2024 and December 31, 2023, respectively
17,386
13,687
Accounts receivable, related party, net of allowance for credit losses of $0 at
each of December 31, 2024 and December 31, 2023, respectively
52,370
34,569
Inventories, net
13,303
12,838
Other current assets
2,952
3,564
Current contract asset
5,939
5,836
Total current assets
96,456
76,447
Long-term contract asset
63,105
68,820
Property and equipment, net
6,178
5,129
Operating lease right-of-use assets
3,326
5,030
Deferred tax assets, net
51
300
Other long-term assets
1,680
1,787
TOTAL ASSETS
$ 170,796
$ 157,513
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 38,073
$ 31,705
Accrued liabilities
5,912
5,890
Income taxes payable
48
45
Current portion of operating lease liabilities
1,486
2,449
Current portion of finance lease liabilities
—
22
Asset-based loan
4,789
7,492
Current portion of long-term debt
60
179
Total current liabilities
50,368
47,782
Deferred revenue, long-term
14
35
Long-term operating lease liabilities
6,514
7,676
Long-term debt
—
60
TOTAL LIABILITIES
56,896
55,553
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares
issued and outstanding
—
—
Common stock, $0.0001 par value, 240,000,000 shares authorized;
30,938,073 shares issued and 29,826,508 shares outstanding at
December 31, 2024; 30,772,837 shares issued and 29,664,130 shares
outstanding at December 31, 2023
3
3
Additional paid-in capital
464,620
463,140
Accumulated other comprehensive income
251
127
Accumulated deficit
(316,308)
(326,806)
Treasury stock, at cost; 1,111,565 and 1,108,707 shares at December 31,
2024 and December 31, 2023, respectively
(34,666)
(34,504)
Total stockholders’ equity
113,900
101,960
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$ 170,796
$ 157,513
FLOTEK INDUSTRIES, INC.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Revenue:
Revenue from external customers
$ 23,328
$ 19,239
$ 71,263
$ 66,518
Revenue from related party
27,430
22,949
115,762
121,540
Total revenues
50,758
42,188
187,025
188,058
Cost of goods sold
38,481
32,758
147,639
163,795
Gross profit
12,277
9,430
39,386
24,263
Operating costs and expenses:
Selling, general, and administrative
6,630
6,552
24,709
27,827
Depreciation
229
204
891
734
Research and development
365
255
1,714
2,486
Gain on sale of property and equipment
(90)
—
(124)
(38)
Gain in fair value of Contract Consideration
Convertible Notes Payable
—
—
—
(29,969)
Total operating costs and expenses
7,134
7,011
27,190
1,040
Income from operations
5,143
2,419
12,196
23,223
Other income (expense):
Paycheck protection plan loan forgiveness
—
—
—
4,522
Interest expense
(253)
(320)
(1,095)
(2,857)
Other income (expense), net
(105)
56
46
(26)
Total other (expense) income
(358)
(264)
(1,049)
1,639
Income before income taxes
4,785
2,155
11,147
24,862
Income tax expense
(356)
(51)
(649)
(149)
Net income
$ 4,429
$ 2,104
$ 10,498
$ 24,713
Income (loss) per common share:
Basic
$ 0.15
$ 0.07
$ 0.36
$ 1.00
Diluted
$ 0.14
$ 0.07
$ 0.34
$ (0.10)
Weighted average common shares:
Weighted average common shares used in
computing basic income (loss) per common
share
29,642
29,396
29,534
24,830
Weighted average common shares used in
computing diluted income (loss) per common
share
31,436
30,496
30,889
28,377
FLOTEK INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
2024
2023
Cash flows from operating activities:
Net income
$ 10,498
$ 24,713
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Change in fair value of contingent consideration
71
(527)
Change in fair value of Contract Consideration Convertible Notes Payable
—
(29,969)
Amortization of convertible note issuance costs
—
83
Payment-in-kind interest expense
—
2,284
Amortization of contract asset
5,612
5,033
Depreciation
891
734
Amortization of asset-based loan origination costs
314
121
Provision for credit losses, net of recoveries
181
138
Provision for excess and obsolete inventory
645
959
Gain on sale of property and equipment
(124)
(38)
Non-cash lease expense
2,094
3,014
Stock compensation expense
1,366
(254)
Deferred income tax expense
249
104
Paycheck protection plan loan forgiveness
—
(4,522)
Changes in current assets and liabilities:
Accounts receivable
(3,880)
5,311
Accounts receivable, related party
(17,801)
(11,886)
Inventories
(1,110)
1,938
Income taxes receivable
8
—
Other assets
561
(836)
Accounts payable
6,368
(1,670)
Accrued liabilities
(70)
(2,575)
Operating lease liabilities
(2,515)
(3,391)
Income taxes payable
3
(53)
Interest payable
—
(8)
Net cash provided by (used in) operating activities
3,361
(11,297)
FLOTEK INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(continued)
Twelve Months Ended
December 31,
2024
2023
Cash flows from investing activities:
Capital expenditures
(1,940)
(1,081)
Proceeds from sale of assets
124
67
Net cash used in investing activities
(1,816)
(1,014)
Cash flows from financing activities:
Payment for forfeited stock options
—
(617)
Payments on long term debt
(179)
(149)
Proceeds from asset-based loan
166,950
68,716
Payments on asset-based loan
(169,653)
(61,224)
Payment of asset-based loan origination costs
(164)
(574)
Payments to tax authorities for shares withheld from employees
(162)
(268)
Proceeds from issuance of stock under Employee Stock Purchase Plan
114
77
Payments for finance leases
(22)
(33)
Net cash (used in) provided by financing activities
(3,116)
5,928
Effect of changes in exchange rates on cash and cash equivalents
124
(54)
Net change in cash and cash equivalents and restricted cash
(1,447)
(6,437)
Cash and cash equivalents at the beginning of period
5,851
12,290
Restricted cash at the beginning of period
102
100
Cash and cash equivalents and restricted cash at beginning of period
5,953
12,390
Cash and cash equivalents at end of period
4,404
5,851
Restricted cash at the end of period
102
102
Cash and cash equivalents and restricted cash at end of period
$ 4,506
$ 5,953
FLOTEK INDUSTRIES, INC.
Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings
(in thousands)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Gross profit
$ 12,277
$ 9,430
$ 39,386
$ 24,263
Stock compensation expense
15
3
24
(132)
Severance and retirement
2
3
11
29
Contingent liability revaluation
117
(143)
71
(527)
Amortization of contract asset
1,271
1,368
5,612
5,033
Adjusted Gross profit (Non-GAAP) (1)
$ 13,682
$ 10,661
$ 45,104
$ 28,666
Net income
$ 4,429
$ 2,104
$ 10,498
$ 24,713
Interest expense
253
320
1,095
2,857
Income tax expense
356
51
649
149
Depreciation and amortization
229
204
891
734
EBITDA (Non-GAAP) (1)
$ 5,267
$ 2,679
$ 13,133
$ 28,453
Stock compensation expense
451
307
1,366
(268)
Severance and retirement
7
10
39
(17)
Contingent liability revaluation
117
(143)
71
(527)
Gain on disposal of assets
(90)
—
(124)
(38)
PPP loan forgiveness
—
—
—
(4,522)
Contract Consideration Convertible Notes Payable revaluation adjustment
—
—
—
(29,969)
Amortization of contract asset
1,271
1,368
5,612
5,033
Non-Recurring professional fees
—
(269)
230
3,343
Adjusted EBITDA (Non-GAAP) (1)
$ 7,023
$ 3,952
$ 20,327
$ 1,488
(1)
Management believes that adjusted gross profit, EBITDA and adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023, are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the income and expenses noted above to be outside of the Company’s normal operating results. Management analyzes operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish financial and operational goals, excluding certain non-cash or non-recurring items.
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SOURCE Flotek Industries, Inc.
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Global AI Leader and Enterprise Transformation Visionary Zeya Ottomone Appointed Chief Executive Officer of Integrow
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31 minutes agoon
July 24, 2026By
Author of Empowered to Execute in the Agentic Era to Lead Next Generation of AI-Powered Enterprise Innovation
ATLANTA, July 24, 2026 /PRNewswire-PRWeb/ — Integrow announced the appointment of Zeya Ottomone as Chief Executive Officer, marking a significant milestone in the company’s evolution as it accelerates its vision to become a global leader in Agentic AI-powered enterprise software and business transformation.
With more than three decades of executive leadership spanning Fortune 500 enterprises, global technology organizations, and enterprise software innovation, Ottomone joins Integrow at a defining moment in the evolution of artificial intelligence.
Widely recognized for helping organizations modernize operations, simplify complex business ecosystems, and deliver measurable transformation outcomes, Ottomone has led some of the industry’s largest enterprise modernization initiatives across ERP, CRM, workforce management, cloud computing, cybersecurity, artificial intelligence, and intelligent automation. His appointment signals Integrow’s commitment to redefining how enterprises execute strategy in the era of autonomous AI.
“Artificial Intelligence is no longer about automation alone, it’s about empowering organizations to execute faster, make smarter decisions, and fundamentally rethink how work gets done,” said Zeya Ottomone, Chief Executive Officer of Integrow. “We’re entering the Agentic Era, where intelligent AI agents become trusted digital teammates capable of planning, reasoning, collaborating and executing alongside people. At Integrow, we’re building the enterprise platform that makes that future practical, secure and measurable for every organization.”
Ottomone is internationally recognized as a leader in enterprise technology, SaaS transformation, digital modernization and AI-enabled business strategy. Throughout his career he has held executive leadership and C-level positions with ABB, Honeywell, AmerisourceBergen, Cable & Wireless, Chicago Tribune and Rimini Street, leading global organizations through large-scale transformation initiatives across North America, Europe, Asia-Pacific and the Middle East. His expertise spans enterprise applications, Salesforce ecosystems, ServiceNow, ERP modernization, customer experience, intelligent operations, data strategy, and the emerging field of Agentic AI.
Before joining Integrow, Ottomone led global SaaS Centers of Excellence focused on enterprise transformation, helping organizations modernize critical business operations while reducing technology complexity and accelerating innovation. A certified Lean Six Sigma Master Black Belt and recognized executive advisor, Ottomone has consistently delivered operational excellence by combining strategic leadership with emerging technologies to create sustainable business value.
His appointment also coincides with the upcoming publication of his new book, Empowered to Execute in the Agentic Era, which explores how organizations can bridge the gap between strategy and execution by leveraging AI, empowering people, and building intelligent enterprises capable of continuous innovation. The book reflects many of the same principles that will guide Integrow’s next phase of growth: human-centered AI, intelligent automation, operational excellence, and measurable business outcomes.
Under Ottomone’s leadership, Integrow will accelerate investment across:
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.”
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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.
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For more information, visit www.integrow.com.
Media Contact
Media Team, Integrow, Inc., 1 855-333-4769, info@integrow.com, www.integrow.com
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SOURCE Integrow, Inc.
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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.
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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
31 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
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