[Source: China Business News]
On July 25, Oriental Selection announced on the Hong Kong Stock Exchange that Dong Yuhui has decided to no longer serve as an employee of the company and the senior management of a consolidated affiliated entity of the company. The resignation is due to Dong Yuhui’s career ambitions, commitment to his other businesses and personal time arrangements, effective July 25, 2024.
In addition to fully paying the promised benefits and compensation to Dong Yuhui, Yu Minhong, chairman of the board of directors, has sought approval from the board of directors and the remuneration committee of the board of directors to distribute all remaining undistributed profits of Peer to Dong Yuhui to Dong Yuhui.
In addition, in accordance with the listing rules and the company's articles of association, Yu Minhong has made arrangements for the settlement consideration for Dong Yuhui's acquisition of Hehui Peer. In order to maintain the normal operation of Hehui Peer, the company will provide self-developed information systems to Hehui Peer for free.
Oriental Selection announced on the Hong Kong Stock Exchange that on July 25, Dong Yuhui (buyer), Beijing New Oriental Xuncheng Network Technology Co., Ltd. (seller) and Youhui Peer (Beijing) Technology Co., Ltd. (target company) entered into a sale agreement, according to As a result, the seller agreed to sell and the buyer agreed to acquire 100% of the equity of the target company for a consideration of RMB 76.5855 million.
Oriental Selection stated in the announcement that since 2021, the group has expanded its self-operated products and live broadcast e-commerce business and established the brand "Oriental Selection". In December 2023, the company cooperated with Dong Yuhui to establish a target company to develop an independent brand "Walking with Hui". The brand name is derived from Dong Yuhui's name and personal intellectual property rights. Since the board of directors believes that the brand itself is inseparable from Dong Yuhui and his personal intellectual property rights and considers the risks associated with the use of intellectual property rights after leaving the company, the board of directors believes that with Dong Yuhui leaving the group, the group will not be able to continue to operate the target company. In addition, with the rapid development of the Group's business and due to the expansion of the Group's influence, the Group believes that there is an urgent need to focus and reallocate more of its resources on developing and upgrading healthy and high-quality products. In view of the above circumstances, the Group believes that the sale of the target company is in the best interests of the Group and its shareholders. For the avoidance of doubt, the Group will continue to operate and expand its self-operated products and live broadcast e-commerce business through the "Oriental Selection" brand.
Affected by this, New Oriental US stocks plummeted before the market opened, falling by more than 6%. Wind data shows that on July 25, the stock price of Oriental Selection was HK$12.4 per share, with a closing increase of 4.2%.
Regarding Dong Yuhui’s departure, Oriental Selection told reporters that the company’s announcement shall prevail.
Subsequently, Yu Minhong issued an "Open Letter to Friends of Oriental Selection Shareholders" in response: In order to express my gratitude to Yuhui, in addition to paying all the promised benefits, I have sincerely requested the board of directors and the remuneration committee and obtained approval to transfer all the benefits of traveling with Hui. The net profit is awarded to Yuhui.
Dong Yuhui wrote: "Considering the current actual situation and development plan, after friendly consultations and unanimous decisions by both parties, the company Hehui Peer will start to operate independently from now on. Without the blessing of the port, Hehui Peer will start from now on." Starting today, we will sail into the vast sea alone. The future is unpredictable, so we can only go all out."
Source: "China Business News" compiled from the Oriental Selection Hong Kong Stock Exchange announcement, Dong Yuhui's personal account, China News Network, and "China Business News". Securities News etc.
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