The family fighting drama of “the first share of jewelry in Shanghai stock market” Leysen Jewelry Inc(603900) is finally coming to an end.
On the late night of January 10, Leysen Jewelry Inc(603900) issued a landmark announcement, pointing out that its board of directors received a written resignation report submitted by Shen Dongjun on the same day, and Shen Dongjun resigned from the relevant positions of the chairman of the company and the special committee of the board of directors for personal reasons. After resigning from the post of chairman, he still serves as a director of the company. According to the company law, the articles of association and other relevant provisions, his resignation report shall take effect when it is delivered to the board of directors of the company.
Shen Dongjun’s departure as chairman was interpreted by many investors as a sign of the end of the internal struggle of the company.
Leysen Jewelry Inc(603900) the announcement issued that night also pointed out that at the board meeting held that day, Ma Jun was elected chairman of the Fourth Board of directors for a term of office from the date of adoption at the current board meeting to the expiration of the term of office of the current board of directors.
At present, the president of Leysen Jewelry Inc(603900) is Jacky Jiang, who was previously nominated by Shen Dongjun. For whether there will be personnel adjustment in the future, the reporter of the international finance news interviewed Leysen Jewelry Inc(603900) this afternoon. The relevant person of its securities affairs department only said that “everything shall be subject to the announcement”.
After opening today, Leysen Jewelry Inc(603900) once rose more than 6% and finally closed at 8.23 yuan, up 2.11%.
high level large change array
On January 10, Leysen Jewelry Inc(603900) disclosed four announcements. According to the announcement information, on the afternoon of that day, Leysen Jewelry Inc(603900) held the first extraordinary general meeting of shareholders in 2022 and the ninth meeting of the Fourth Board of directors of the company.
According to the disclosed announcement, the shareholders’ meeting considered proposals including the by election of Zhuang Ou as a director of the company and the by election of independent directors of the company. The results showed that the proposal to elect Zhuang Ou as a director of the company obtained 57.6128% of the votes and was finally passed. In addition, in the proposal for by election of independent directors, in addition to Qian Zhi, three people, including Huang Guoxiong, Chen Yiping and Fu Jinhua, were elected.
In the announcement of the resolution of the ninth meeting of the Fourth Board of directors issued together, Leysen Jewelry Inc(603900) pointed out that in view of the election of four directors at the first extraordinary general meeting of shareholders in 2022, Shen Dongjun, chairman of the company, resigned from the post of chairman and relevant posts of the special Committee of the board of directors on January 10. In order to ensure the normal and standardized operation of the board of directors, Ma Jun, a director jointly elected by more than half of the directors of the company, urgently convened and held the ninth meeting of the Fourth Board of directors on January 10. There were 8 directors who should attend the meeting, 8 actually attended the meeting, and the company’s supervisors and senior managers attended the meeting as nonvoting delegates.
After careful deliberation, the meeting passed the proposal on adjusting the members of the special committee of the board of directors and the proposal on electing the chairman of the company. So far, Ma Jun was elected chairman of the Fourth Board of directors with 8 votes.
Shen Dongjun was Ma Jun’s brother-in-law. On December 2 last year, Leysen Jewelry Inc(603900) issued a progress announcement on the litigation involving the original actual controller and a suggestive announcement on the change of shareholders’ equity and the change of actual controller. According to the announcement, on December 1, Shen Dongjun, the original actual controller of Leysen Jewelry Inc(603900) , received the second instance judgment on his divorce lawsuit made by Nanjing Intermediate People’s Court of Jiangsu Province on November 26. His 31.16% shares of the company will be divided into half of Ma Qiao, accounting for 15.58% of the total share capital of the company. This equity change will lead to changes in the controlling shareholder and actual controller of the company. Ma Jun and the persons acting in concert jointly control 48.45% of the shares of the listed company.
In order not to make a tender offer, Ma Jun and the persons acting in concert at that time promised to reduce the shares of the company held by him or his controlling shareholders to 30% or less within 30 days from the date of disclosure of the announcement in accordance with paragraph 2 of Article 61 of the measures for the Administration of the acquisition of listed companies. At the end of 2021, buyers also appeared as scheduled.
The reporter noted that after the announcement on the change of actual controller was released, on December 6, 2021, Leysen Jewelry Inc(603900) received a written resignation report submitted by Shen Dongjun, who resigned as president of the company for personal reasons.
Subsequently, on December 9, Hu Xiaoming, an independent director of the company, resigned as an independent director of the company and a member of the special committee of the board of directors for personal reasons.
A few days later, the company’s director Chen Chuanming resigned as a director of the company for personal reasons, and independent directors Zhou Xiaohu and Huang Dechun also resigned as independent directors and members of the special committee of the board of directors for personal reasons.
So far, Leysen Jewelry Inc(603900) has undergone large-scale personnel changes. According to the Securities Daily, at yesterday’s shareholders\’ meeting, Shen Dongjun was asked “after Ma Jun took charge of the board of directors, will you always hold an opposite attitude in the future?” He replied with a smile that “no matter who will do it in the back (Chairman position), my shareholder status has not changed. I hope he can do well and I can get dividends only if he does well.”
Can usher in new development
With the announcement of the new director camp, the future development around Leysen Jewelry Inc(603900) is also on the table. Under the leadership of the new chairman, Leysen Jewelry Inc(603900) what will happen?
It is worth mentioning that in December last year, after resigning as president, Shen Dongjun proposed to appoint Jacky Jiang as president of the company. According to the information disclosed by the company, Jacky Jiang was born in March 1963, Australian nationality, has the permanent residence ID card of foreigners of the people’s Republic of China, doctor of business administration and senior engineer. Since 2002, he has served as president of Eurostar diamond (Shanghai) Co., Ltd., chairman of Eurostar jewelry (Shanghai) Co., Ltd., chairman of Euro diamond (HK) Limited, director of Shanghai Diamond Exchange, director of Taohuayuan natural ecological protection foundation and partner of Yunfeng fund. Since 2008, he has successively served as president of HRD (China), high-level diamond Parliament of Belgium, vice president of China Jewelry Industry Association, executive president of Shanghai Gem Jewelry Industry Association, President of Sakha diamond Co., Ltd. (a listed company) of Japan, and director of the first, second and third boards of directors of Leysen Jewelry Inc(603900) .
At that time, Ma Jun and his wife Pang Yize voted against the proposal and gave several reasons for opposition, including that the actual controller of the company had just changed and the new actual controller was promoting the re-election of the board of directors. At this time, Shen Dongjun nominated Jacky Jiang as the president of the company, which was not conducive to the handover of the old and new actual controllers and the stability of the company, It is likely to lead to confusion in corporate management and governance; Jacky Jiang has successively held shares in several important suppliers of the company or served as director and supervisor. In recent years, the company’s performance has declined year by year, but the inventory has remained high. If he serves as the president of the company, it is bound to increase the company’s related party transactions and increase the risk of interest preference. “We even suspect that the real purpose of Shen Dongjun and Jacky Jiang is to use transactions and other behaviors to transfer interests and damage the interests of listed companies and small and medium-sized shareholders.
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According to the daily economic news, Ma Jun intended to nominate Zhuang Ou as Leysen Jewelry Inc(603900) president at yesterday’s shareholders’ meeting. It is reported that from 2006 to 2018, Zhuang Ou served as the head of Leysen Jewelry Inc(603900) commodity innovation center and the chairman of the board of supervisors of the company, and then resigned in the internal struggle of the company.
Zhuang Ou also said in an interview with the media that in the past three years, Leysen Jewelry Inc(603900) management level, brand influence and operation ability seem to be out of standard. There are many reasons, including internal disputes between the two companies, failing to keep up with the market changes in the past two years, and the disagreement between bosses leads to confusion among employees and confusion among franchisees. The first thing to do in the future is to stabilize the morale of the army and boost morale. The second is to establish Leysen Jewelry Inc(603900) unique brand advantages.
Leysen Jewelry Inc(603900) is known as the first share of Shanghai jewelry IPO. It was listed on November 23, 2016 at an issue price of 14.25 yuan. At that time, the listed company was called psychic jewelry. It was a well-known jewelry brand in China. For many years, it was mainly engaged in the brand operation, product design and sales of diamond jewelry. In 2017, the company acquired the Belgian jewelry brand Leysen and changed its name to Leysen Jewelry Inc(603900) .
In 2020, Leysen Jewelry Inc(603900) achieved an operating revenue of 1.227 billion yuan, a year-on-year decrease of 6.95%, and the net profit attributable to the shareholders of the parent company was 104 million yuan, a year-on-year decrease of 31.56%. In the first half of last year, its operating revenue was 790 million yuan, a year-on-year increase of 46.46%, and the net profit attributable to the shareholders of the parent company was 101 million yuan, a year-on-year increase of 53.03%.
What will the company’s future business development strategy change after the change of control and the big change of senior management? The reporter of the international finance news called its securities affairs department, and the reply was “subject to the announcement of listed companies”.
(source: International Finance News)
