Hong Kong-listed China Shengmu Organic Milk, a Chinese dairy farmer and producer of milk products taken over by Inner Mongolia Yili earlier this year, has changed its CFO and CEO.
Wang Yueha, 43, takes over in an acting capacity from CFO Cui Ruicheng, who remains an executive director. Board chairman Shao Genhuo, 52, replaces Yao Tongshan as acting Chief Executive Officer. Yao remains an executive director.
The company said the new appointees are expected to "provide a new insight to the operation and financial management of the Company and its subsidiaries in the future." China Shengmu reported a 98% fall in profits for the six months to June 30, 2017 on a 29% fall in revenue. In a profit warning announcement, the company referenced "substantial losses arising from the changes in the fair value of biological assets less sales expenses attributable to the parent company, provision for impairment of trade receivables and other factors."
Wang graduated with a bachelor’s degree in economics from Taiyuan University of Science and Technology in 1996. He joined China Shengmu in July this year as assistant to chairman and head of audit.
Before then, he held various positions in Dabeinong Group, including senior vice president in the group feed production department and chief financial officer.
In naming Shao as acting CEO, China Shengmu noted that it is deviating from the Hong Kong Stock Exchange's Coporate Governance Code, which recommends (but does not require) that the roles of board chairman and CEO be separate and should not be performed by the same person.
"The Board is of the view that the existing Board and the management composition of the Company is appropriately structured to provide sufficient checks and balances," it argues, but adds that the board "will review the need to separate the roles of chairman of the Board and the chief executive officer of the Company, as well as the management structure of the Company, from time to time."