YanGuFang International Group Co., a prominent health food company specializing in the production, sourcing, research and development, as well as the sales and distribution of oat and grain products within China and globally, found itself at the center of a significant development today. YanGuFang announced that Mr. Junguo He, the CEO and Chairman of the Board of Directors, and Mr. Kui Shi, the CFO, have been detained by the Public Safety Bureau of Shanghai, China. The Shanghai Police are currently conducting an investigation into the matter.
As news of the detainment of its CEO and CFO spread, YanGuFang International Group faced an immediate impact on the stock market. On Thursday, the company’s stock opened at $1.60, marking a decline from the previous day’s closing price of $1.81. The downward trend is continuing as the day’s trading is progressing.
At the time of this publication, YanGuFang International Group Co Ltd stock (YGF) has witnessed a decline.
YanGuFang International Group Co Ltd
Current Price: $1.34
Change : -0.47
Change (%): (-25.97%)
Volume: 171.3K
Source: Tomorrow Events Market Data
Despite the unfolding events, as of this announcement, YanGuFang International Group has not received any official notice regarding the investigation into Mr. He or Mr. Shi, nor have the specific reasons for their detainment been disclosed.
Given the current circumstances and the unavailability of the CEO and CFO, the company’s Board of Directors has taken decisive action. Mr. Ya Zhang, the Chief Operating Officer of YanGuFang International Group since December 2021, has been appointed as the Interim CEO. Simultaneously, Ms. Yang Sui, the Financial Director of Inner Mongolia YanGuFang Whole Grain Industry Development Co., Ltd. Hangzhou Branch, a subsidiary of the Company’s variable interest entities, has been appointed as the Interim CFO, effective as of January 9, 2024.
Mr. Zhang brings a wealth of experience, having been an integral part of the company’s operations for over a year. With a background in business management spanning more than a decade, he is well-equipped to navigate the challenges posed by the current situation. Similarly, Ms. Sui, who has served as the Financial Director of one of the variable interest entities’ branch companies since October 2022, possesses extensive financial expertise, especially in the context of listed companies in China, with a career spanning over 18 years.
The interim management team is set to steer YanGuFang International Group under the guidance of the Board of Directors. Despite the ongoing developments, the company assures stakeholders that its business and daily operations are continuing in an ordinary and orderly manner. The announcement underscores the commitment of the interim leadership to maintain stability during this challenging period. The company will provide updates as more information becomes available, and the investigation progresses.
