By LI Hao
An extraordinary shareholders' meeting at Jonjee Hi-tech on Monday fired four directors, all of whom had previously worked at Baoneng Group, a property and financial services conglomerate controlled by billionaire YAO Zhenhua.
Three new directors were appointed, all of whom originate at investors and property managers Zhongshan Torch Group.
Established in 1993, Jonjee Hi-tech owns two major seasoning brands, "Chubang" and "Meiweixian," and ranks second in the domestic market, just behind Haitian Flavoring & Food, the largest manufacturer of soy sauce in the world.
Torch and Baoneng were previously the two major shareholders of Jonjee.
In 2021, some of Baoneng's investments underperformed and the company made big losses, leading to a debt crisis. Consequently, Baoneng was forced to reduce its stake in Jonjee, while Torch took the opportunity to increase its holdings and become the largest shareholder.
Prior to this, Baoneng Group had attempted many times to gain control of Jonjee, but all efforts ended in failure. This spectacle caught the attention of regulatory authorities, and on July 24, Shanghai Stock Exchange issued a warning to Jonjee, urging the company to handle internal conflicts properly and protect the interests of the company and minority shareholders.
Upon receiving the news, Baoneng issued a statement claiming that the meeting was illegal and the resolution invalid. However, several lawyers have stated that the meeting is in compliance with company law.
