Core Viewpoint - The company, Jimin Health, is facing significant financial losses due to a scandal involving the forgery of company seals by its vice president, He Qinghong, which has led to legal disputes with distributors and a projected loss of 28.32 million yuan for 2024 [1]. Financial Impact - Jimin Health reported a net profit loss of 59.71 million yuan for 2024, which is similar to the previous year's losses, and the expectation of reducing losses by approximately 50 million yuan has not materialized [1]. - The sales revenue generated by He Qinghong's team amounted to approximately 117 million yuan, representing about 7% of the company's total revenue during 2023 and 2024 [5]. Legal and Management Issues - The company is under scrutiny for its internal control and management practices, particularly regarding the unauthorized signing of contracts by a high-ranking executive [5][6]. - Legal experts suggest that the contracts signed under the forged seals may still be considered valid, placing the company at risk of having to fulfill its obligations to the distributors [8][9]. Company Response and Future Measures - Jimin Health has stated its intention to improve governance and internal controls to prevent similar incidents in the future [5]. - The company has terminated He Qinghong's employment following the revelation of the scandal [4]. Contractual Obligations - The disputed supplementary agreement allows distributors to return products and claim a 10% compensation for funds occupied if sales targets are not met within a specified period [7]. - Legal opinions indicate that the company may be held liable for the actions of its employees, even if those actions involve criminal misconduct [8][9].