Synutra International, Inc. (SYUT 9.11, -0.29, -3.09%) , a leading infant formula company in China and a producer, marketer and seller of nutritional products for infants, children and adults, has announced that Mr. Ka Keung Yeung has resigned from Synutra's Board of Directors in order to avoid a potential conflict of interest related to the Company's potential legal actions involving Phoenix TV. The resignation is not due to any dispute between the Company and Mr. Yeung.
Mr. Yeung stated, "My resignation from the Board is related entirely to minimizing any actual or perceived conflict of interest as Synutra evaluates potential legal actions involving Phoenix TV, my current employer. I support the outcome of the Ministry of Health's ("MOH") investigation and product testing, which demonstrated that Synutra's products were not linked to premature development. While my executive responsibilities at Phoenix TV necessitate that I resign from Synutra's Board of Directors, my support and respect for Synutra's management team is ongoing."
Commenting on Mr. Yeung's resignation, Mr. Liang Zhang, Chairman and CEO of Synutra, stated, "Mr. Yeung has executed his board duties admirably, and we appreciate his integrity and expertise during his tenure as an independent director. However, Phoenix TV's response to our demand for an apology following their erroneous media reports has been unsatisfactory, and our movement toward legal proceedings with Phoenix TV puts Mr. Yeung in a very difficult position through no fault of his own."
Mr. Zhang continued, "The Company continues its recovery from the negative impact of the recent events. We are monitoring our product sell-through on a day-to-day basis, and we remain cautiously optimistic about our ongoing recovery."
About Synutra International, Inc.
Synutra International, Inc. (SYUT 9.11, -0.29, -3.09%) is a leading infant formula company in China. It principally produces markets and sells its products under the "Shengyuan" or "Synutra" name, together with other complementary brands. It focuses on selling premium infant formula products, which are supplemented by more affordable infant formulas targeting the mass market as well as other nutritional products and ingredients. It sells its products through extensive nationwide sales and distribution network covering 30 provinces and provincial-level municipalities in China. As of June 30, 2010, this network comprised over 560 independent distributors and over 1,000 independent sub-distributors who sell Synutra products in over 74,000 retail outlets.