Today is going to be last day for me to address to you as the Chairman of Hymall Tesco. Here I formally announce that the Ting Hsin Group and Tesco have reached a mutual and amicable agreement to adjust the equity proportions from 50:50 to 10:90. Effectively, this means Ting Hsin releasing 40% of its shareholding to Tesco and myself resigning from the positions of Executive Chairman and CEO whilst remaining as a board director with immediate effect.
Frankly speaking, my heart is filled with mixed emotions! But I firmly believe that this adjustment in shareholdings will have a favourable effect on Hymall Tesco’s future growth. Therefore, after having given thorough consideration, this rational decision was made. This is also the reason of retaining 10% of the stake rather than releasing the entire shareholding.
Thinking back to 1997 when I founded Hymall, it was the team that exerted themselves to make steady progress. There have been numerous joys and sorrows. Countless number of challenges were surmounted and finally we grew and prospered. Hymall is widely recognised and supported by customers, suppliers and industry competitors. These achievements sowed the good seed for the 50:50 joint venture between Hymall and Tesco in 2004.
Maybe it is due to the lack of experience in operating a 50:50 joint venture business, both sides of the joint venture have found themselves continuously making compromises and adaptations. On the one hand we have introduced a considerable amount of new better processes and procedures into the business. On the other hand, these introductions have brought about some confusion. Getting to the root of the issue, it can be pinned down to the divergence in decision-making and command. From experience, I believe the golden age of the China retailing industry will only last for another 3 to 5 years. If we failed to grab the opportunity with both hands, things could become even harder. To avoid Hymall’s growth opportunity being affected by further internal inefficiency, the priority is to consolidate decision-making and command. Therefore, I am willing to step back and become a minority shareholder, to part with something I treasure dearly and to live the virtue of making individual sacrifices for the greater good through entrusting Tesco to assume the responsibility of operating the business.
I would urge all the managers to keep up with the fine tradition of being diligent. Spare no efforts to create a brighter future for Hymall under the unitary leadership of the new CEO-Ken. Make people feel proud and happy to be part of Hymall. I cannot wait to see it happen!
Lastly, I would like to once again express my gratitude for the contribution you have made to Hymall along the way. I am even more grateful for your unreserved help and support to myself personally. Here I wish you good health, wonderful career and great fortune. Thank you.
Merry Christmas and Happy New Year!
