Financial Services Association, September 9 (Reporter Luo Yichen) - Chinese beauty leader Perea (603605.SH) is mired in a storm of personnel changes. Following the departure of the three generals of the Chief Marketing Officer, Chief R&D Officer, and Chief Scientific Officer, Fang Yuyou, the company's co-founder and general manager, also dropped out of the new board of directors, which further heightened market concerns about the company's prospects.

At the performance briefing held today, investors frequently asked questions about the reason for Fang Yuyou's exit and the potential risk of reducing holdings, but the company was unwilling to explain more.

At the meeting, faced with investors questioning why Fang Yuyou was not nominated as a director, the company's management did not give a clear explanation, but only repeatedly emphasized that the 2024 First Extraordinary General Meeting of Shareholders will be held on September 12. The relevant information is subject to the information disclosed by the exchange.

The management's response heightened investors' concerns. Some investors raised personal questions at the performance meeting. Fang Yuyou left the company's board of directors or was just the first step. Next, he may step down as the company's director and supervisor, which in turn may reduce his holdings of the company's stock, causing an impact on the company's stock price. However, Perea's management continued its previous statement and did not clearly deny the possibility that Fang Yuyou will step down as director and supervisor.

In addition to the position of co-founder and general manager of the company, Fang Yuyou is also the company's third-largest shareholder, holding 15.03% of Perea's shares. Judging from the historical changes in shareholding, although he has reduced his holdings many times, overall, “the amount of reduction in holdings is small and the amount of increase in holdings is large”, and the scale of his holdings is still at an all-time high.

Compared to the risk of reducing holdings, the long-term impact of Fang Yuyou's departure on the company's development is worth paying more attention to. According to beauty industry insiders, Fang Yuyou is the main hero behind Perea's sharp rise in performance in recent years. While attending industry events, she shared the company's experience in formulating large product strategies and adjusting the organizational structure many times, and mentioned that she “holds several positions”, and even clubbed late into the night with young employees in their 50s to be close to young consumers.

As Fang Yuyou leaves the company's new board of directors, Chairman Hou Juncheng, son of Hou Juncheng, Hou Yameng, and Deputy General Manager Jin Yanhua will form a new core of power. It is worth noting that judging from the past history, apart from Hou Yameng's focus on e-commerce business, Hou Juncheng and Jin Yanhua's main experiences are on the supply chain side. Currently, the main problems facing Pereya are still focused on product development and brand marketing.

According to the semi-annual report, the growth rate of new brands such as Perea's Caitang, OR, and Yuefuti has clearly slowed, and the multi-brand strategy advocated by the company seems to be hampered. In response, Fang Yuyou replied at the meeting that both Caitang and OR will launch new products in the second half of the year. The latter supply chain has already been adjusted from Japan to domestic, and it is expected that they will perform well in the second half of the year. As for the affordable skincare brand Yuefu, it admits that it is still being adjusted, stating that “Yuefuti's price is more suitable for consumption levels in Southeast Asia.” According to reports, Perea has already sold products to countries and regions such as Japan and Southeast Asia through online channels, but it is still small and is in the exploration stage.