Beijing News (Chief Reporter Guo Tie) On January 10, a reporter from the Beijing News learned that Greatview Packaging, a Hong Kong-listed aseptic packaging company, announced that it planned to hold an extraordinary general meeting on January 26 on the appointment of five directors including Wang Hang. The Board of Directors of Greatview Packaging objected to the appointment of Wang Hang as a non-executive director of the Company, arguing that its related party Xinjufeng was a competitor of Greatview Packaging, and that the appointment was not in the interests of the Company and its shareholders, and suggested that all shareholders vote against it.
In November 2023, Jingfeng Holdings***, a shareholder of Greatview Packaging, requested an extraordinary general meeting of shareholders to appoint Wang Hang as a non-executive director of the company, and Wen Jiaxuan and four others as non-executive directors or independent non-executive directors of the company.
In an announcement on January 10, 2024, the board of directors of Greatview Packaging said that several customers have reported that Wang Hang is the founding partner of Beijing Hosen Investment Management Center, and Hosen Investment is the fourth largest shareholder of Xinjufeng, which in turn is the ultimate holding company of Jingfeng Holdings. Since Xinjufeng is mainly engaged in aseptic packaging business, it is a direct competitor of Greatview Packaging. If Wang Hang is elected as a director of Greatview Packaging, he may have access to certain trade secrets and sensitive information of the company.
The board of directors of Greatview Packaging also stated that Wang Hang is a director of New Hope Liuhe, and its related parties are the main competitors of some of Greatview Packaging's major customers. The board of directors of Greatview Packaging is concerned that with the addition of Wang Hang to the board, the company's strategic relationship with major customers will be further tightened, which may lead to a decrease in orders.
In addition to questioning the appointment of Wang Hang as a director, Greatview Packaging's board of directors also pointed the finger at Xinjufeng's acquisition of its shares, saying that some customers wrote to Greatview Packaging to express their concerns, saying that Greatview Packaging is a leading international packaging company, and with the acquisition of Greatview Packaging's equity and the attempt to introduce proposed directors, Greatview Packaging will lose its value as an international company. After learning of the equity acquisition of Xinjufeng, a bank has withdrawn its credit facility for Greatview Packaging.
The Board of Directors of Greatview Packaging is of the view that the existing Board members already have extensive experience and ability to lead the Company, and if the proposed Directors join the Board, the proportion of independent non-executive Directors will be reduced from 43% to 33%, thereby reducing the independence of the Board and weakening the Company's corporate governance.
For the above reasons, the Board of Directors of Greatview Packaging considers that the cost of the proposed Director joining the Board outweighs its benefits, and therefore recommends that all shareholders vote against all proposals at the EGM.
In May 2023, Xinjufeng disclosed the "Material Asset Purchase Report (Draft)", and planned to acquire Greatview Packaging 28. from JSH Venture Holdings Limited22% of the shares, the purchase price is about 8600 million yuan. In October of the same year, Xinjufeng announced that the registration of the equity transfer was completed, and the implementation of the major asset purchase was completed.
Edited by Li Yan.
Proofreading by Liu Baoqing.