The chairman of the board was arrested and the general manager of Dongfang Fashion was replaced

The news that Xu Xiong, Chairman of Dongfang Fashion (603377), was approved for arrest on suspicion of manipulating the securities market continued to ferment over the weekend. On September 17, Dongfang Fashion quickly "changed the helm". In the evening of the same day, the company disclosed that Xu Xiong was removed from the position of director and chairman of the board, and the board of directors agreed to elect Yan Wenhui, director and general manager, to perform the duties of chairman of the board.

Yan Wenhui Acting as Chairman

After Xu Xiong was approved for arrest, Yan Wenhui, the general manager of Dongfang Fashion, shouldered the responsibility of chairman.

On the evening of September 17, Dongfang Fashion said that the company held the fifth meeting of the fifth board of directors on the same day, reviewed and passed the Proposal on the Election of Directors and General Manager to Act as Chairman of the Board, and the board of directors agreed to elect director and general manager Yan Wenhui to act as Chairman of the Board.

It is understood that Dongfang Fashion disclosed in the evening of September 15 that the actual controller and the chairman of the board of directors had been taken criminal coercive measures. It said that the family members of Xu Xiong, the actual controller and chairman of the board of directors, had informed that Xu Xiong was arrested with the approval of the First Branch of the Shanghai People's Procuratorate on suspicion of manipulating the securities market. On September 17, Dongfang Fashion said that because Xu Xiong could not normally perform his duties as a director, chairman of the board and member of the special committee of the company, the board of directors agreed to remove Xu Xiong as a director, chairman of the board, chairman of the strategy committee, member of the audit committee, member of the remuneration and assessment committee and member of the nomination committee of the fifth board of directors.

According to the 2022 annual report of Oriental Fashion, Xu Xiong, now 51 years old, indirectly holds 21.81% of the company's shares through the controlling shareholder Oriental Fashion Investment Co., Ltd. (hereinafter referred to as "Fashion Investment"), in addition, he directly holds 6.9% of the shares of listed companies. It should be noted that in May 2021, Ye Fei, a well-known former private equity fund manager, disclosed that many listed companies such as Dongfang Fashion had "pseudo market value management".

Yan Wenhui, one of the founders of Oriental Fashion, was born in 1966 with a bachelor's degree.

According to his resume, Yan Wenhui has served as the president of Jing'an Art School since 1992, and is now the vice president of China Road Transport Association, the president of Motor Vehicle Driving Training Branch, and the vice president of China Road Traffic Safety Association. Xu Xiaoheng, an investment and financing expert, told the Beijing Business Daily that although the detention and arrest of the actual controller had nothing to do with the listed company, it would also have some negative effects on the company to a certain extent. The rapid "change of leadership" of Oriental Fashion may also be to reduce the impact of negative public opinion.

The controlling shareholder has repurchased 3.4 million shares

On the evening of September 15, Dongfang Fashion disclosed an announcement on the results of share reduction by the controlling shareholder Fashion Investment, saying that it had received a notice from the controlling shareholder on the same day. As of September 15, Fashion Investment had repurchased 3.4 million shares through self raised funds through centralized bidding in the secondary market, and all the gains from the repurchasing of shares were owned by the listed company.

Recently, Dongfang Fashion has been continuously negative, and the illegal reduction of its controlling shareholder's fashion investment has just attracted the attention of the regulatory authorities.

On September 6, Dongfang Fashion announced that the company had received the decision letter of ordering corrective measures issued by the Beijing Securities Regulatory Bureau, and the Beijing Securities Regulatory Bureau had taken regulatory measures to order the correction of the controlling shareholders' illegal share reduction.

According to the data, Dongfang Fashion landed in the A-share market in February 2016. The company is in the driving training industry. Since its establishment, the company has trained more than 2.3 million drivers and has the ability to train all models. In the first half of this year, Dongfang Fashion realized an attributable net profit of about 4.714 million yuan and -11.84 million yuan respectively after deducting non profits.

On the secondary market, the stock price of Dongfang Fashion has declined in a row recently. According to statistics, in the 65 trading days from June 15 to September 15 this year, the company's stock price fell by 29.58% in total, and the overall market fell by 3.45% in the same period. As of the closing on September 15, Dongfang Fashion reported 6.07 yuan per share, with a total market value of 4.375 billion yuan.

In response to relevant questions, a reporter from Beijing Business Daily called the Office of the Secretary of Dongfang Fashion for an interview, but no one answered the phone.

key word: Oriental Fashion Responsibilities of the Chairman Securities Regulatory Bureau Complement Chairman