Rectifier Technologies Limited

ASX:RFT

Rectifier Technologies Limited

ASX:RFT
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$0.009 (+12.5%)
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#109
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35
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90
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Reports (5) My Report Forum Investors
Forum Topics RFT RFT #Shitshow

Pinned straw:
LifeCapital
Added 5 months ago

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Bushmanpat
2 months ago

Ying Ming Wang keeping it in the family by promoting his son.

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Wakem
2 months ago

Grub

12
Bear77
2 months ago

Pure speculation here - but it might just be possible that Mr Yingming Wang, the Chairman of the board of Directors and a significant shareholder of RFT, stepping down as CEO immediately and announcing his intention to retire from the Board Chaiman's position also as soon as a suitable replacement has been found, COULD be to satisfy or to partially satisfy the ASX's (and possibly's ASIC's) concerns about the corporate governance and hostile behaviour accusations (/concerns) made (/raised) by the directors who quit the Board in November when RFT last traded. He will still have the numbers to control the company, but no longer be on the Board and therefore no longer have to obey the ASX and ASIC rules concerning Board members and corporate governance. Having his son both on the board and in the top job - as CEO - means he's only one step away and will always know what's going on anyway without being a Board member himself, assuming he quits the Board, not just the Chairman position.

Appointment-of-Zorn-Wong-as-CEO-and-Chairman-to-retire.PDF [15-Mar-2024, 3:45pm]

Remember that the original reason for the trading suspension was the breach of rules around the minimum number of directors and the directors' residency requirements, as discussed in this thread already, and that has already been rectified, however the ASX have not allowed them to resume trading because they have other concerns, such as a "please explain" letter that has not been replied to in a way that fully satisfies the ASX concerns, concerns that MIGHT include those concerns raised by former Board members of poor corporate governance and the Chairman acting as a hostile shareholder and voting his shares against resolutions that were fully supported by all of the former Board members. They might also have some concerns about a perceived takeover attempt or change of control effected by the Chairman without the support of any of the other Board members.

That's my best guess, based on what we know, but there is also another possibility, which is that Yingming Wang is happy for RFT to NOT be trading, so hasn't tried to get them removed from the trading suspension. That could be for a few different reasons, one is that he wants to position the board and management exactly the way he chooses to without any pressure from other shareholders, so wants the share structure to remain completely unchanged for now, while he has full control, and a second reason might be around wanting to take the company private and manoeuvring everyone into position and setting the stage for that to occur, which could take some time. Again, pure speculation, and the only way to know will be to look back later with the benefit of hindsight. Fairly sure that if he wants to take the company private, as the man controlling the largest block of RFT shares, he could possibly best orchestrate that as an ex-Board member while still controlling the Board through his recent appointments to the Board (i.e. the entire Board) which includes his son Zorn Wong.

We shall see.

[not a holder.]

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Rick
2 months ago

@Strawman can we extend an invitation to the new CEO of Rectifier, Zorn Wong, to discuss the future of the business. I doubt he’ll accept, but it’s worth a try.

34
Strawman
a month ago

Can do @Rick

14
mushroompanda
a month ago

@Strawman‘s intro to the meeting with Zorn: https://x.com/ebitdaddy90/status/1770497870556471748?s=46&t=YeDphKvDBs9SUkkDi-Svqg

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Strawman
a month ago

haha -- take no prisoners @mushroompanda

13
AlphaAngle
2 months ago

Sentiment check

fb2d7fde80b5af854142a0e56b33edff3819f2.jpeg

22
mikebrisy
5 months ago

$RFT announces Director appointments.

ASX Announcement

Trevor Fox looks like an experienced finance director. However, according to his LinkedIn profile, this would be the first board appointment.

I can find no internet footprint for Philippe Compagnon, other than an empty LinkedIn profile that confirms his IDEMIA role.

Deng Mu also has limited internet profile, apart form his LinkedIn profile which shows his role as Risk Manager at OCBC since 2010, ongoing.

Can't find any internet footprint for Mr Zorn Wong.

Conclusion: Hardly a stellar line-up, but it looks like one experienced Australian finance professional. Severe lack of board experience. Not sure what shareholders will think.

35
Wini
5 months ago

@mikebrisy Obviously a very rushed together board. The biggest question mark for me is the comment that Zorn Wong would be an executive director of the company, implying an operational role in the business. Some work would need to be done here, my thesis was that if this was a board spat that didn't filter down to the operating business than the long term value of the business would be salvaged.

But this could be a sign the Chair is now trying to get operational control as well as board control and would raise serious concerns as to whether that value now gets siphoned away.

39
mikebrisy
5 months ago

@Wini agreed.

Quite extraordinary to have an Exec Director while the CEO is not on the board. Of course, as a minimum, it means that the Executive team discussions take place in the presence of a Board Member. So on the one hand you might argue that this will force a degree of alignment by ensuring that there aren't separate Board and Executive "realities".

Also, the Operational Managers who are former directors still own a reasonable number and value of shares, It will be interesting to see if they remain in post over time.

However, it all comes down to the point you raised in an earlier post: what is that Chairman's agenda?

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Wakem
5 months ago

Its even made the Australian , growing legs...


https://www.theaustralian.com.au/business/technology/rectifier-technologies-board-resigns-over-hostile-shareholder/news-story/0e1ac56c75d03d912b9f56c7e9781ba3


Rectifier Technologies board resigns over ‘hostile’ shareholder

Rectifier Technologies specialising in EV chargers and power supplies for the defence sector.

  • EXCLUSIVE

By JARED LYNCH

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A tech company specialising in electricity systems for Australia’s defence sector has been suspended from trading on the ASX after most of its board resigned, citing “serious” corporate governance concerns, leaving its China-based chairman as its sole director.


A boardroom exodus has fractured Rectifier Technologies, which has a market value of almost $50m, after proxies indicated they would vote against the election of its three Australian-based directors at its annual meeting earlier this week.

The directors Valentino Vescovi, Nicholas Yeoh and Jitto Arulampalam resigned immediately. In a statement to the ASX, the trio “highlighted serious concerns as the result of a potential hostile shareholder”. They did not name the shareholder.

READ NEXT

Chief executive Yanbin Wang also stepped down from the board but will maintain his executive role. Founder and chief power engineer Nigel Machin also resigned as a director.

This has left Yingming Wang, Rectifier’s chairman, as sole director of the company, which is based in Melbourne and has offices in Malaysia and Singapore. Yingming Wang is also managing director of Pudu Group, Rectifier’s biggest shareholder with a 16.3 per cent stake.

As a result, the company has been suspended from trading on the ASX.

Under the Corporations Act, a public company must have at least two directors who reside in Australia.

Rectifier Technologies chief executive Yanbin Wang.

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An email, obtained by The Australian, sent by Yingming Wang to Rectifier Technologies company secretary Hasaka Martin on October 31 - a month before the AGM - proposed to nominate Shufeng Wang and Zongxu Wang as additional directors to the board.

CEO Yanbin Wang - who was originally from China but has lived in the US since 1987 - and the company’s former deputy chairman Jitto Arulampalam said they weren’t aware of the proposal until last Monday.

In the email, Yingming Wang wrote: “As the largest shareholder and RTL’s Chairman, I should have the right to propose an additional motion 28 days before the AGM is held. This time, I specially propose to nominate Mr Wang Shufeng and Mr Wang Zongxu as the additional directors to the board. I expect you can add this new proposal to the voting report in the AGM of notice to the shareholders before 12 Noon, 31 October 2023 after receiving my email”.

The proposal to add two new directors was not included in the company’s annual meeting notice sent on October 31.

Yingming Wang deferred questions about his email to his lawyer, who said he understood the proposal was made “in response to Mr Wang’s own concerns with the company’s corporate governance”.

Rectifier Technologies chairman Yingming Wang.

Yingming Wang issued a statement to the ASX on Friday, stating the company was in the process of undertaking a search for “qualified and experienced Director candidates and conducting appropriate background checks into each potential candidate before any appointment”.

He told The Australian that he first invested in Rectifier Technologies in 2005 when it was facing financial difficulties at the company’s invitation.

“My level of shareholding in the company (~16 per cent) has not changed materially since then,” Yingming Wang said.

“I have been chairman with the full support of the board. But have not had any involvement with the day to day management of the company – and do not intend to have any such role.

“I can’t comment on why other shareholders voted against their re-election, but there was a significant majority who clearly did not want them to remain in office.”

It comes as the company secured a $US22m ($33.1m) contract from a “critical customer” and set to start producing a high voltage rectifier - a device which converts alternating current to direct current - from next year to meet “growing demand, particularly in defence products”.

In the past five years Rectifier’s shares have jumped 20 per cent to 3.6c. It more than doubled its revenue to $39.4m in the year to June 30, while its net profit vaulted to $6.6m from $658,394 a year earlier.

“The company has experienced remarkable growth from 2022 to 2023, not only in terms of sales but also in profitability. The surge in revenue, coupled with efficient cost management, has resulted in a significantly improved net profit margin,” Rectifier said when it released its full-year earnings in August.

“The company has successfully secured purchase orders valued at $US22m from a critical customer. With the procurement team efficiently sourcing the required manufacturing materials, we maintain a solid commitment to ensuring prompt product delivery to all our customers.

“The acquisition of orders worth $US22m from a critical customer is a testament to our robust business relationships and the exceptional quality of our offerings. This achievement also underscores our capability to meet substantial demand requirements efficiently.”

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