The “Eastern Selection” anchor Dong Yuhui has resigned, and Eastern Selection has sold 100% equity of “Yuhui Together” (Beijing) Technology Co., Ltd. to Dong Yuhui for 76.5855 million yuan (RMB, hereinafter the same).
On July 25th, Eastern Selection announced on the Hong Kong Stock Exchange that Dong Yuhui has decided to no longer serve as an employee of the company and as a senior management of a merged affiliated entity of the company. This resignation is due to Dong Yuhui’s career aspirations, commitment to other businesses, and personal time arrangements, and took effect on July 25, 2024.
Following the announcement, “New Eastern” stock plunged over 6% in pre-market trading.
In addition to fully paying all promised benefits and compensations to Dong Yuhui, Chairman of the Board Yu Minhong has sought approval from the board and the board’s compensation committee to distribute all remaining undistributed surplus profits of “Yuhui Together” to Dong Yuhui.
Furthermore, in accordance with listing rules and company bylaws, Yu Minhong has made arrangements for the settlement price for Dong Yuhui’s acquisition of “Yuhui Together”. To ensure the normal operation of Yuhui Together, the company will provide its independently developed information system to it for free.
On the same day, Eastern Selection issued another announcement showing that on July 25th, Dong Yuhui (buyer), Beijing New Eastern Xun Cheng Network Technology Co., Ltd. (seller), and Yuhui Together Technology Co., Ltd. (target company) entered into a sale agreement, whereby the seller agreed to sell, and the buyer agreed to acquire 100% equity of the target company for 76.5855 million yuan. According to the announcement, the 76.5855 million yuan will be paid in two installments, with Dong Yuhui required to pay 38.2927 million yuan within 30 working days from the agreement date and another 38.2927 million yuan within 10 working days from the completion date of the sale.
Meanwhile, Dong Yuhui posted a letter titled “A Letter to All Friends” on social media, stating, “Considering the current situation and development plans, through friendly negotiations and unanimous decisions between both parties, the company Yuhui Together will start to operate independently. Departing from the shelter of the harbor, Yuhui Together will now sail towards the vast sea from today onwards. The future is unpredictable, but we will give it our all.”
Subsequently, the founder of New Eastern and CEO of Eastern Selection, Yu Minhong, issued an open letter titled “To the Shareholder Friends of Eastern Selection” in response: “Despite the lack of any obstacles in communication between Yuhui and me, the complex public opinion disputes, along with the guidance and rumors from a few malicious forces, have directly led to the estrangement between Eastern Selection and Yuhui Together. I myself have been deeply immersed in the tide of public opinion, continuously attacked and vilified, and Yuhui has also been subject to many unfounded accusations and harms, which have persisted until today. This public opinion environment has resulted in significant uncertainty for the development of both companies, with stock prices being heavily influenced by external factors, and the company’s credibility and reputation rapidly declining.”
“Around March, Yuhui and I met multiple times, continuously discussing future development plans, and felt that the complex external and internal environments we faced would not only lead the company into crisis but also cause harm to personal and company’s long-term development. To ensure that Yuhui Together has a better development platform, avoid business conflicts and public opinion disputes, after repeated consultations between us, we finally decided that after the end of the fiscal year (May 31), I would request the board’s approval to transfer 100% of Yuhui Together’s shares to Yuhui himself.”
“Yuhui Together is about to become independent. To express gratitude to Yuhui, in addition to all the benefits already paid, I have earnestly requested and obtained the approval of the board and the compensation committee to reward Yuhui with all the net profits of Yuhui Together.”