Core Viewpoint - Shanghai Municipal Communications Administration has reported that 145 apps (SDKs) have violated user rights, requiring immediate rectification and self-assessment from the involved companies, including Herbalife (Shanghai) Management Co., Ltd. [1] Group 1: Company Overview - Herbalife (Shanghai) Management Co., Ltd. was established in 2014 and is primarily engaged in business services, with a registered capital of 2 million USD and paid-in capital of 942,000 USD [2]. - The company reported total net sales of 1.222 billion USD for Q1 2025, a decrease from 1.264 billion USD in the same period last year [2]. - In the Chinese market, net sales for Q1 2025 were 64.8 million USD, down from 75.2 million USD year-on-year [2]. Group 2: Financial Performance - For the fiscal year ending December 31, 2024, net sales in China were 297.6 million USD, a decline of 29.8 million USD or 9.1% compared to the previous year [2]. - The decrease in net sales was attributed to a 6.5% drop in sales volume, a 2.5% adverse impact from sales mix, and a 1.6% negative effect from foreign exchange fluctuations [2]. - In 2023, net sales were 327.4 million USD, reflecting a 63.6 million USD decline or 16.3% year-on-year [3]. Group 3: Management Changes and Challenges - In January 2024, Herbalife appointed Cai Menghong as the new General Manager for the China region, taking over from Li Yanliang, who had been in charge since 2007 [3][4]. - The company is facing tensions with its distributors, highlighted by a case where a long-term distributor was accused of "low-price sales" and had their account frozen, leading to public disputes over unpaid fees [4].