Just now, Proya released the “Announcement of the Resolutions of the First Extraordinary General Meeting of Shareholders in 2024” (hereinafter referred to as the “Announcement”), disclosing the new list of the board of directors of the company. Mr. Fang Yuyou, the 55-year-old co-founder and CEO of Proya, was not included in the list, despite having served as a director of Proya for nearly ten years.
At the same time, the official WeChat account of “Proya Company” released a message stating that Mr. Fang Yuyou, the original co-founder and director of Proya, will no longer continue to serve as a director and general manager of the company due to personal reasons. He will remain a co-founder and a board advisor of the company in the future. The new general manager of Proya Corporation will be Mr. Hou Yameng.
This also means that Hou Jun’s son, 36-year-old Hou Yameng, is officially taking over and steering Proya.
Fang Yuyou serves as a board advisor, personal business territory blossoms comprehensively.
According to the ‘Announcement,’ Hou Juncheng, Hou Yameng, and Jin Yanhua were elected as the non-independent directors of the fourth session of Proya, while Ma Dongming and Ge Weijun serve as the independent directors for a term of three years.
CHAILEEDO noted that the only change compared to the previous board members list is the absence of Fang Yuyou. The replacement is the seasoned Proya veteran Jin Yanhua, marking his first entry into the board of directors.
It is understood that Jin Yanhua, aged 61, has been deeply involved in Proya’s supply chain business for many years. The ‘Announcement’ indicates that from 2007 to August 2012, Jin Yanhua served as the General Manager of the Huzhou Factory at Proya and its predecessor. From August 2012 to the present, he has been the General Manager of the Proya Supply Chain Management Center; and from April 2018 to the present, he has served as the Deputy General Manager of the company.
Simultaneously, Jin Yanhua holds positions in over 20 related companies of Proya, including key positions in businesses that Proya is focusing on developing, such as being the Chairman of Ningbo TIMAGE Cosmetics Co., Ltd. and the Executive Director and General Manager of Ningbo Jingzhe Cosmetics Co., Ltd.
In fact, Fang Yuyou’s departure from the Proya board is not without precedent. In a previous announcement by Proya, Fang Yuyou was not included in the list of candidates for the new session of non-independent directors, which had attracted widespread attention (see CHAILEEDO’s article ‘Proya Chairman’s “Unusual” Move!’).
Well-known to the public, in 2003, Fang Yuyou co-founded Proya with his brother-in-law Hou Juncheng and subsequently served as the co-founder and CEO of the company for a long time, holding significant decision-making power in areas such as strategic planning, department management, and product development. Under Fang Yuyou’s leadership in 2023, Proya surpassed Shanghai Jahwa to become a leading domestic beauty brand.
Due to Fang Yuyou’s deep ties with Proya, his exit from the board has drawn considerable attention from the public, and this move is interpreted as a signal of his departure from Proya. At a recent half-year performance briefing for Proya in 2024, investors inquired about the reasons for Fang Yuyou’s exit from the board and whether he would continue to hold a position in the company. Proya did not provide a clear explanation, stating that the information in the announcement should be referred to.
CHAILEEDO noted that in recent years, Fang Yuyou has frequently reduced his holdings of Proya shares and has accelerated his business expansion into areas such as rural tourism, plant-based beverages, and commercial complexes. According to Proya’s financial report for 2023, Fang Yuyou holds 15.03% of Proya’s shares, ranking as the third-largest shareholder.
Simultaneously, in several leaked Proya performance exchange meeting minutes, Proya has repeatedly emphasized that Fang Yuyou will not leave Proya. For example, in a leaked mid-term performance exchange meeting minutes for 2024, Proya stated, ‘Even if Mr. Fang steps down, he will not leave Proya, and will be responsible for organizing key strategic directions: creating a well-established system.’
It is worth mentioning that it is not unprecedented for individuals to remain involved in company management after stepping down from the board or relinquishing specific positions at Proya. Cao Liangguo, one of the Proya co-founders also known as one of the ‘Proya Three Musketeers’ alongside Hou Juncheng and Fang Yuyou, stepped down from his positions as a director and vice general manager of Proya in 2021 due to health reasons. However, he continued to be responsible for Proya’s e-commerce and research and development sectors, as well as leading the training of young management teams in the company. After Proya’s Chief Scientific Officer Wei Xiaolan left this year, media reports indicate that Cao Liangguo has taken on the role of overseeing the research and development department, acting as a ‘firefighter captain.
Hou Yameng officially takes over, having served in the e-commerce department for many years.
Another point of interest is that while Fang Yuyou exits the new Proya board, the name of Hou Jun’s son, Hou Yameng, has been repeatedly mentioned. Fang Yuyou stepping down as a Proya director is seen as an important step in Hou Yameng’s succession. CHAILEEDO noted that Hou Yameng has also spoken publicly about his feelings and challenges regarding succession, confirming that he has been progressing on the path of taking over the company.
Public records show that at the 2023 Business and Charity Forum hosted by Xingdao Shanmeng last year, Hou Yameng participated in a panel discussion on “Next-Generation Education and Leadership” alongside many second-generation successors in businesses.
When asked by the host about how he is handling the challenging process of succession and carrying forward the family’s legacy, Hou Yameng expressed, “I highly admire all of you who have already completed this journey.”
At the same time, judging from his tenure at Proya and recent public appearances, it seems that Hou Yameng is moving closer to the center stage of Proya.
According to the “Wenzhou Overseas Chinese Federation” public account, Hou Yameng studied in Canada. From Proya’s announcements, Hou Yameng joined Proya in 2014 and worked in the e-commerce department. From 2015 to May 2021, he appeared in public reports in various roles such as Proya’s micro-commerce project manager, chief news officer, and Tencent e-commerce executive.
In September 2021, following Cao Guoliang’s resignation from the positions of director and vice-general manager, Hou Yameng took over. That year, he also became the legal representative, executive director, and general manager of Hangzhou TIMAGE Cosmetics Co., Ltd., a subsidiary of Proya. At that time, Proya responded to investors stating that Hou Yameng was mainly responsible for Proya’s private domain sector.
It can be seen that since 2014, Hou Yameng has mainly worked in Proya’s e-commerce department, only entering Proya’s core management team formally after 7 years. CHAILEEDO’s analysis shows that starting from the second half of last year, Hou Yameng began appearing more frequently in the public eye. He not only participated in important internal meetings at Proya but also represented the company in various external cooperation activities.
For example, in April of this year, Hou Yameng attended the launch meeting of Proya’s digital transformation project and emphasized that “digitalization is key to enhancing Proya’s business capabilities and market performance.” At the same time, he represented Proya in cooperation ceremonies with companies like Lubrizol and Beijing Technology and Business University.
Currently, compared to the first-generation Proya managers like Hou Juncheng and Fang Yuyou, Hou Yameng, with his international background, may have a more global perspective.
It is worth noting that at the 2023 Business and Charity Forum held in Singapore last year, Hou Yameng expressed his views on the domestic beauty market, stating, “Those who have ventured into the beauty industry should know that this track is particularly challenging and innovative, so we can only tackle it with a persistent innovative approach, maintain an entrepreneurial mindset, and view things with a positive outlook.”
Talents emerge in every generation. The long-term development of a company will inevitably involve the process of injecting fresh blood through the transition of old and new. Hou Yameng officially taking the helm at Proya signifies that the company is stepping into a new era. CHAILEEDO will continue to monitor Proya’s future developments.
