Unbelievable! After his brother's divorce, Proya co-founder Fang Yuyou’s 1.9 billion shares were frozen | Hot Finance

Recently, a single announcement issued by A-share cosmetics leader Proya Cosmetics Co., Ltd. (hereinafter referred to as “Proya”) has drawn market attention: around 32.8263 million shares held by Yu You, a co-founder and a shareholder holding more than 5% of the company’s shares, have been subjected to judicial freezing. Based on the closing price of 59.73 yuan per share on April 7, the frozen shares correspond to a market value as high as 1.96 billion yuan, accounting for 55.05% of Yu You’s total shareholding, and also for 8.29% of the company’s total share capital. This equity freezing involving a listed company turned out to stem from a family internal divorce-related property division dispute—an asset dispute between Yu You’s brother, Yu Zhan, and his ex-wife, Bao Julan, unexpectedly pushed this Proya core shareholder into the spotlight.

According to the details of the announcement, this share freeze is divided into two parts: newly added freezing and continuation of the freeze. On February 12, 2026, the Hangzhou Municipal Intermediate People’s Court issued a “Notice of Property Preservation Matters,” newly freezing 15.7850 million shares held by Yu You, with a freeze term of 3 years, expiring on February 11, 2029; meanwhile, the 17.0413 million shares that had previously been frozen in May 2023 are also extended for preservation until March 18, 2029. As the company’s second-largest natural-person shareholder, Yu You currently holds 59.6253 million shares, or 15.06% of the total share capital. After more than half of his shares are frozen, the relevant shares are temporarily unable to be handled through transfers, pledges, and other operations. This is a preservation measure taken by the court to ensure the smooth execution of the divorce property division judgment.

The root of this equity turmoil traces back to an equity transfer in 2013. At that time, Yu Zhan transferred 10.4334 million Proya shares he held (representing 11.59% of the company’s total share capital at the time) to his younger brother, Yu You, for a price of 34.4959 million yuan. Proya’s IPO prospectus previously recorded that the transfer was “genuine and lawful, with a fair price.” However, after Yu Zhan divorced Bao Julan, Bao Julan raised doubts about this transfer, arguing that it was a “fake transfer with real shareholding in another’s name,” with the core purpose being to shift joint marital property. She then filed a lawsuit with the court. After judicial proceedings, the court ultimately determined that Yu You had not actually paid the equity transfer payment, there was no genuine agreement on transfer between the parties, the “Share Transfer Agreement” involved in the case was invalid, and there was also an agreement for shareholding in another’s name. Even if Yu Zhan and Yu You filed an appeal, the Zhejiang Higher People’s Court rejected it. Starting from May 2023, the court gradually took preservation and freezing measures on the relevant shares; in February 2026, it added freezes again due to fluctuations in the share price, ultimately resulting in the current scale of freezing.

In response to this share freezing event, Proya stated clearly in the announcement: Yu You is not the company’s controlling shareholder or actual controller. This share freeze will not lead to any change in the company’s control, nor will it have a substantive impact on the company’s normal production and operation or strategic advancement. The company will continue to closely monitor the progress of the event, strictly fulfill information disclosure obligations in accordance with laws and regulations, and earnestly safeguard the lawful rights and interests of the broad investing public.

** By | Reporter Wang Haiyan **

** Picture | Network screenshot **