Daniel Lu
About Daniel Lu
Wenzhao “Daniel” Lu, age 67, is Chairman of the Board at Avalon GloboCare (ALBT), serving since October 10, 2016. He is a healthcare entrepreneur with prior leadership roles in China’s hospital sector (Daopei Medical Group) and in biotech operations (BioTime Asia); he holds a B.A. from Temple University’s Tyler School of Art. The Board does not identify him as an independent director; the proxy lists four independent directors (Felix, Sanders, Stilley, Troy).
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Daopei Medical Group | Chairman of the Board | 2010–2021 | Led private hematology hospital group and labs; expansion and partnerships in China. |
| BioTime Asia Limited (subsidiary of BioTime, Inc.) | Chief Operating Officer | 2009 | Regional operating leadership in biotech. |
| Ogilvy & Mather | Senior Art Director | Pre-1988+ | Early career; branding/communications background. |
External Roles
| Organization | Role | Notes |
|---|---|---|
| None disclosed | — | The proxy does not list other current public company directorships for Mr. Lu. |
Board Governance
- Role: Chairman of the Board; CEO and Chair roles are separated. The Board believes separation enhances oversight. No Lead Independent Director is referenced.
- Independence: Not independent under Nasdaq/SEC rules; independent directors are Steven A. Sanders, Lourdes Felix, William B. Stilley III, and Tevi Troy.
- Committee assignments (Mr. Lu): Not listed as a member of Audit, Compensation, or Nominating & Corporate Governance Committees (all independent-only committees).
- Attendance: Board met 5 times in 2024; each director attended at least 75% of aggregate Board and committee meetings for which they served. Audit (4 meetings), Compensation (2), Nominating & Corporate Governance (1).
- Code of Conduct and Anti-Hedging: Company prohibits directors/officers/employees and their affiliates from engaging in hedging/monetization transactions (e.g., zero-cost collars, forwards).
- Clawback: Awards under the Amended & Restated 2020 Plan are subject to clawback policy adopted Nov 16, 2023.
Fixed Compensation
| Component (USD) | 2024 |
|---|---|
| Annual retainer (cash) | $100,000 |
| Stock awards | $0 |
| Option awards | $0 |
| Meeting/committee chair fees | Not separately disclosed |
Notes: Other non-employee directors received modest option value ($2,697–$4,697) alongside cash retainers, but Mr. Lu’s 2024 compensation was entirely cash.
Performance Compensation
| Item | 2024 Detail |
|---|---|
| Annual director equity grant | None disclosed for Mr. Lu in 2024 |
| Performance metrics tied to director pay | Not disclosed for directors |
| Equity plan oversight | Equity plans exist; director awards can be made under plans subject to clawback. |
The company maintains equity plans with RSUs/options capacity; however, Mr. Lu did not receive equity awards in 2024.
Other Directorships & Interlocks
| Company/Entity | Relationship/Role | Details |
|---|---|---|
| D.P. Capital Investments LLC | Related-party tenant; controlled by Mr. Lu | Leases space at ALBT’s NJ property; rental revenue to ALBT was $50,400 in 2024 and 2023; $25,200 for six months ended 6/30/2025; lease term 5/1/2021–4/30/2026. |
| Avalon RT 9 (ALBT subsidiary) | Buyer (Mr. Lu) of minority stake | Membership Interest Purchase Agreement (11/17/2023): Mr. Lu to buy 30% for $3,000,000; option for up to an additional 70% for up to $7,000,000 within 12 months; cash received by ALBT of $3,108,106 (2024) and $485,714 (2023); closing expected Q4 2025. |
| ALBT Line of Credit | Lender (Mr. Lu) | $20M LOC (5% interest), matured 12/31/2024; 2023 draw $850,000; 2024 repayment $400,000; $450,000 reclassified to advance from related party; 2024 interest expense $42,445; accrued/unpaid interest $0 at 12/31/2024 ($33,712 at 12/31/2023). |
| ALBT Preferred Equity | Holder; exchanged securities | On 1/9/2025, exchanged 9,000 Series A for 5,000 Series D; deemed contribution recognized of $162,473. |
Expertise & Qualifications
- Healthcare operations and networks in China (DPMG chairman 2010–2021); biotech operating experience (BioTime Asia COO); cross-border healthcare commercialization context.
- Corporate leadership and governance experience as ALBT Chairman since 2016.
- Education: B.A., Temple University (Tyler School of Art).
Equity Ownership
| Metric | Value |
|---|---|
| Shares beneficially owned | 238,928 shares |
| Ownership as % of outstanding | 5.6% (out of 4,252,009 shares outstanding as of 10/31/2025) |
| Options exercisable within 60 days | Not listed for Mr. Lu (table presents common shares only for him) |
| Anti-hedging policy | Hedging and monetization transactions prohibited for directors/officers/employees and affiliates. |
Governance Assessment
- Independence and committee structure: Mr. Lu is not independent and serves as Board Chair; all three key committees (Audit, Compensation, Nominating & Governance) are composed solely of independent directors, which helps mitigate concentration of control in oversight functions.
- Attendance/engagement: Board and committees met regularly in 2024; all directors met the 75% attendance threshold, indicating baseline engagement.
- Compensation alignment: In 2024, Mr. Lu’s director pay was 100% cash ($100,000) with no equity grant, reducing at-risk alignment through new awards; however, he holds a 5.6% equity stake, which provides material skin-in-the-game.
- Related-party exposure (RED FLAGS): Multiple transactions involving Mr. Lu raise potential conflicts requiring rigorous Audit Committee oversight—tenant lease with a Lu-controlled entity; $20M LOC and related interest; purchase of a large stake in a subsidiary; preferred stock exchange. These are disclosed and subject to the company’s related-party review policy, but they represent sustained counterparty exposure to the Chairman.
- Controls & policies: Clawback policy (adopted 11/16/2023) applies to plan awards; insider trading policy includes anti-hedging prohibitions. Section 16(a) compliance was timely for 2024, supporting baseline governance hygiene.
Board/Committee Snapshot (for context)
| Body | 2024 Meetings | Composition |
|---|---|---|
| Board | 5 | Seven directors during 2024; four independent; CEO set to resign 11/30/2025. Mr. Lu is Chair. |
| Audit Committee | 4 | Stilley (Chair, financial expert), Sanders, Troy (all independent). |
| Compensation Committee | 2 | Felix (Chair), Sanders, Troy (all independent). |
| Nominating & Corporate Governance | 1 | Sanders (Chair), Stilley, Troy (all independent). |
Related-Party Transactions Summary (Chairman-involved)
| Transaction | Amount/Terms | Period/Status |
|---|---|---|
| D.P. Capital lease (Lu-controlled) | $50,400 rent revenue in 2024 and 2023; $25,200 for six months ended 6/30/2025; lease 5/1/2021–4/30/2026 | Ongoing |
| Line of Credit from Lu | $20M facility at 5%; 2023 draw $850,000; 2024 repayment $400,000; $450,000 reclassified; 2024 interest expense $42,445; accrued interest $0 at 12/31/2024 ($33,712 at 12/31/2023) | Matured 12/31/2024 |
| Avalon RT 9 equity sale to Lu | $3,000,000 for 30% plus option up to 70% for up to $7,000,000; cash received $3,108,106 (2024), $485,714 (2023); closing expected Q4 2025 | Pending close Q4 2025 |
| Series A-to-D preferred exchange | Exchange on 1/9/2025; deemed contribution $162,473 | Completed |
Policy note: The Audit Committee reviews and approves related-party transactions, including ongoing oversight of conflicts; this is critical given the Chairman’s counterparty roles.
RED FLAGS
- Multiple material related-party transactions involving the Chairman (lease, credit facility, subsidiary ownership purchase, preferred exchange) elevate conflict risk and demand strong independent oversight.
- No explicit Lead Independent Director noted, which could be a gap given a non-independent Chair.
Section 16(a) compliance: Company reports all required Forms 3/4/5 were timely filed for 2024.