Jay Yu
About Jay Yu
Jie “Jay” Yu is Chief Financial Officer of Ispire Technology Inc., appointed on May 13, 2025; he is 41 years old and previously served as Ispire’s Vice President of Finance since June 2023 . He holds a Bachelor of Commerce and a postgraduate degree in finance and accounting from the University of Auckland . Prior experience includes public accounting roles (KPMG auditor, Crowe Horwath 2009–2012, DA HUA CPA 2012–2016) and CFO roles (MTI Environmental Group 2016–2018, Luokung Technology Corp. 2018–2023), indicating deep public company and audit expertise . Upon appointment, management emphasized a cost-reduction program targeting $10.2 million in annualized operating expense cuts ($3.6 million payroll reduction in May 2025 plus up to $6.6 million further opex over the next three months) to improve margins and path to profitability .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ispire Technology Inc. | Chief Financial Officer | 2025–present | Leads finance amid cost-reduction program and internal control remediation environment |
| Ispire Technology Inc. | Vice President of Finance | 2023–2025 | Built credibility and knowledge of corporate financial structures prior to CFO appointment |
| Luokung Technology Corp. (OTCMKTS: LKCOF) | Chief Financial Officer | 2018–2023 | Public company CFO experience; oversight of finance and reporting |
| MTI Environmental Group | Chief Financial Officer | 2016–2018 | Led finance at environmental group |
| DA HUA CPA | Senior Manager | 2012–2016 | Public accounting leadership in audit/assurance |
| Crowe Horwath (Hong Kong) | Senior Accountant | 2009–2012 | Public accounting experience |
| KPMG | Auditor | 2008 | Foundation in Big Four auditing |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed | — | — | No family relationships or related party arrangements; no Item 404(a) transactions disclosed for Mr. Yu |
Fixed Compensation
| Component | Amount | Effective Date | Notes |
|---|---|---|---|
| Base Salary | $200,000 | May 13, 2025 | Initial annual base salary as CFO |
| Target Bonus % | Not disclosed | — | Annual performance bonus at Compensation Committee’s sole discretion |
| Actual Bonus Paid | Not disclosed | — | Not disclosed at appointment |
Performance Compensation
- No RSU/PSU/option grants or award metrics specific to Jay Yu were disclosed at appointment .
- Company’s equity framework emphasizes at-risk, performance-linked compensation, with performance criteria including return on net operating assets and total shareholder return for certain awards (program-level disclosure, not specific to Yu) .
Equity Ownership & Alignment
| Ownership Item | Detail |
|---|---|
| Shares owned (beneficial) | Not disclosed in May 13–15, 2025 appointment materials; not listed among principal stockholders in the May 9, 2025 beneficial ownership table |
| Ownership % of outstanding | Not disclosed; not among holders ≥1% in the May 9, 2025 table |
| Vested vs unvested equity | Not disclosed; no grants noted for Yu at appointment |
| Options (exercisable/unexercisable) | Not disclosed; no option awards noted for Yu at appointment |
| Pledging/Hedging | Insider Trading Policy requires pre-clearance for trades; short sales, puts and calls are strongly discouraged; policy does not explicitly prohibit hedging transactions |
| Clawback | Executive incentive compensation subject to clawback policy adopted Nov 27, 2023; recent restatements did not trigger recovery (no erroneously awarded compensation identified) |
| Ownership guidelines | Not disclosed in available documents |
Employment Terms
| Term | Detail |
|---|---|
| Appointment Date | May 13, 2025 (CFO) |
| Contract Term Length | Not disclosed |
| Base Salary | $200,000 |
| Annual Bonus | Discretionary; Compensation Committee decides |
| Severance | Not disclosed |
| Change-of-Control | Not disclosed for Yu; prior change-of-control acceleration was specified for certain other executives’ awards (program-level) |
| Non-compete / Non-solicit | Not disclosed |
| Garden Leave / Consulting | Not disclosed |
| Related Party Transactions | None; Item 404(a) disclosure states no current or proposed transactions for Yu; no family relationships |
Performance & Track Record
- Cost discipline: Management announced a plan to reduce annualized operating expenses by $10.2 million ($3.6 million payroll, up to $6.6 million additional opex), aiming to increase margins and support profitable growth .
- Operating environment: Company experienced restatements and material weaknesses in internal control over financial reporting during FY2024 and into FY2025 (inventory reserves, credit loss estimates, accounting policies and ITGCs, and technical accounting personnel), which the Audit Committee is addressing with auditor transitions and remediation efforts .
- Qualifications: University of Auckland finance/accounting degrees; extensive audit/public accounting background; prior public company CFO roles .
Compensation Committee Analysis
- Committee Composition: Compensation Committee comprises independent directors Christopher Robert Burch, Brent Cox (Chair), and John Fargis .
- Consultant: Korn Ferry engaged in May 2024 to benchmark executive compensation; directors aligned to 25th percentile peer pay; broader executive structure adopted to align management and shareholder interests .
- Policies: Executive compensation clawback policy in place; insider trading policy requires pre-clearance and strongly discourages short sales/options; hedging not explicitly prohibited .
Risk Indicators & Red Flags
- Internal control/material weaknesses and restatements elevate execution risk and may demand stronger finance controls and reporting rigor under the CFO’s leadership .
- Controlled company status and significant related party transactions with Shenzhen Yi Jia (manufacturing, large related-party payables) create governance/independence scrutiny of financial oversight and pricing .
- Auditor changes across FY2024–FY2025 (MSPC resignation; Marcum’s attest business transition to CBIZ; appointment of Marcum Asia) add complexity to audit continuity .
Investment Implications
- Alignment and incentives: At appointment, Yu’s compensation is modest fixed cash ($200,000) with discretionary bonus; lack of disclosed equity grants reduces near-term insider selling pressure but also limits direct equity alignment until awards are granted .
- Execution focus: Yu’s audit/CFO pedigree is well-suited to address Ispire’s disclosed material weaknesses and restatement history, a critical lever for valuation credibility and cost-of-capital; successful remediation is a key trading signal .
- Governance/related parties: Persistent reliance on Shenzhen Yi Jia and controlled company structure necessitate disciplined audit committee oversight and transparent pricing to mitigate governance risk, which investors should monitor via filings and committee actions .
- Cost program: Management’s articulated $10.2 million annualized expense reductions signal margin support; investor tracking should focus on subsequent quarterlies for realized opex savings and cash conversion under Yu’s stewardship .