China Beauty Distributor Modern Avenue Stock Suspended for over Half a Month

Modern Avenue, the Chinese distributor of global beauty brands such as Estée Lauder, Lancôme, and Clinique, announced that the company’s stock has been suspended for over half a month for not disclosing its annual report within the legal deadline.

Today, Modern Avenue (Modern Avenue Fashion Group Co., Ltd.) released an announcement regarding the company's actual controller being released on bail pending trial.

According to the announcement, the company received a notice from the actual controller of the company, Mr. Lin Yongfei, that the public security authorities have issued a "Bail Pending Trial Decision" for him. According to the relevant provisions of the "Criminal Procedure Law of the People's Republic of China", he was granted bail pending trial, starting from May 11, 2023. It also stated that Mr. Lin Yongfei did not hold any positions in the company and did not participate in the company's management. The above matter will not affect the company's daily production and operation activities.

According to a previous announcement, the Shanghai Financial Court will hold a public online judicial auction on "JD.com" (www.jd.com) from 10:00 on May 30, 2023, to 10:00 on May 31, 2023, to auction the 16,000,000 unrestricted circulating shares held by the company's actual controller, Mr. Lin Yongfei. The company said that the shares that may be auctioned accounted for 100% of the shares held by Lin Yongfei and 2.25% of the total share capital. After the auction and passive reduction, Mr. Lin Yongfei and Ruifeng Group will no longer hold any shares in the company, and the company may have no actual controller or controlling shareholder.

It is worth noting that Modern Avenue was originally scheduled to disclose its 2022 annual report and the first quarter report of 2023 on April 29, 2023. However, due to the change of accounting firms, the company was unable to disclose its annual report within the legal deadline, and since the opening balance could not be determined, it was also unable to disclose the first quarter report of 2023 on time. According to the provisions of the "Shenzhen Stock Exchange Listing Rules (2023 Revision)", the company's stock has been suspended since the opening of the market on May 4, 2023.

According to Modern Avenue's official website, the company is a global fashion brand distributor with its main business covering three major areas: clothing and bags, skincare and makeup, and jewelry and accessories. The brands it operates include Estée Lauder, Lancôme, Clinique, Kiehl's, Shiseido, and others. It has opened an Esscents fragrance duty-free store in the Sands Cotai Central in Macau, specializing in top international cosmetics and perfumes such as YSL, CLARINS, BVLGARI, BURBERRY, and GUCCI. In addition, it has also established B2B and B2C partnerships with e-commerce platforms such as Suning, Tmall, Vipshop, JD, Koala, and Xiaohongshu.