JOEONE(SH:601566) Shang Hai Zheng Quan Bao·2025-08-21 19:07Core Viewpoint - The company is taking steps to regain control over the Anhui market by recovering operating rights and repurchasing goods from its distributor, Anhui Jiutelong Investment Co., Ltd, as part of its strategy to enhance direct consumer engagement and improve inventory management [2][10][18]. Group 1: Board Meeting and Resolutions - The third meeting of the sixth board of directors was held on August 21, 2025, with all nine directors present, including independent directors participating via video [1]. - The board approved the proposal regarding the change of operating rights in the Anhui market and related transactions, with a voting result of 7 in favor and 1 against [3][20]. - The dissenting director expressed concerns about the lengthy transition period and urged for a quicker handover [2][20]. Group 2: Details of the Transactions - The company plans to recover the operating rights for the Anhui market and repurchase certain goods from Anhui Jiutelong, with the total transaction amount not exceeding 30 million yuan [9][10]. - The transaction is scheduled for completion by March 31, 2026, and is classified as a related party transaction but does not constitute a major asset restructuring [9][11]. - The company has engaged in related party transactions exceeding 30 million yuan in the past 12 months, but these do not exceed 5% of the latest audited net assets, thus not requiring shareholder approval [11]. Group 3: Impact on Financials - The repurchase of goods is expected to reduce the company's revenue by approximately 20 million yuan in 2025 and increase inventory by about 12 million yuan, leading to a net profit decrease of around 6 million yuan [18]. - The company anticipates a further reduction in revenue of about 10 million yuan in 2026 due to additional repurchases, with a corresponding increase in inventory and a decrease in net profit [18]. Group 4: Independent Directors' Opinions - Independent directors unanimously supported the proposal, stating that regaining operating rights aligns with the company's long-term development needs and will not harm the interests of the company or its minority shareholders [19][20].