FAST NEWS: Zhou Hei Ya CEO resigns, replaced by chairman
The Latest: Food processor and retailer Zhou Hei Ya International Holdings Co. Ltd. (1458.HK) announced Thursday that Zhang Yuchen has resigned as chief executive officer and executive director for “personal development” reasons, and chairman Zhou Fuyu will assume the role of chief executive officer.
Looking Up: Zhou Fuyu, the founder of Zhou Hei Ya, has over 20 years of experience in the industry and has been a key driver of the company’s success. As he’s familiar with the company’s business, his concurrent role as the chief executive officer may provide stability to the company as it undergoes a change in personnel.
Take Note: From the perspective of corporate governance, the posts of chairman and chief executive officer should be held by different persons to avoid concentration of control and to ensure segregation of duties.
Digging Deeper: Established in 2006, Zhou Hei Ya is a food-processing company that produces and sells cooked and marinated products and was listed in Hong Kong in November 2016. The company has expanded rapidly since its IPO, with 3,816 stores at the end of last year, covering 331 provinces and cities throughout China. However, since the outbreak of Covid pandemic in 2020, its business has been seriously disrupted, resulting in a significant drop in net profit. Even though China’s economic activity has returned to since last year, its profitability has not returned to pre-pandemic levels.
Market Reaction: Zhou Hei Ya shares rose on Thursday, closing up 1.2% to HK$1.73 at the midday break. The stock now trades at the lower end of its 52-week range.
Translation by A. Au
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