Picture source: Visual China
Blue Whale News July 25th (Reporter Qin Quan) After a long breakup, it has reached that point...
On the evening of July 25th, Oriental Selection issued three announcements in Hong Kong stocks : 1. The amicable departure of the group’s well-known anchor (Dong Yuhui); 2. The specific transaction details of Oriental Selection’s sale of Hui Peer; 3. Oriental Selection stated that it would repurchase companies worth no more than 500 million yuan in the open market from time to time within one year. shares.
can be summarized as, break up, how to break up, Oriental Select buyback to stabilize its own stock price. The details of the breakup of
still caused surprise in the industry. The announcement pointed out that Dong Yuhui (the buyer), Beijing New Oriental Xuncheng Network Technology Co., Ltd. (the seller) and Hehui Peer (Beijing) Technology Co., Ltd. (the target company) entered into a sale agreement, according to which the seller agreed to sell and the buyer agreed to acquire the target company. 100% equity of the company at a consideration of RMB 76.5855 million. After the announcement of
, Yu Minhong published an "Open Letter to Friends of Oriental Selection Shareholders" on his personal public account. One sentence said, "Yuhui holds the equity purchase money required by Hui Peer, and I also comply with the rules of listed companies." and arrange payment in the manner stipulated in the company's articles of association." Yu Minhong later said in a message, "This sentence means that I arranged the money for Yuhui to purchase the company, and the company gave it to Yuhui."
Dong Yuhui has since become the real boss of Hui. Not only did Dong Yuhui and Yu Minhong break up completely, "Oriental Screening" and "Walking with Hui" have no equity-level relationships since then, and the two top live broadcast studios will be direct competitors in the future.
The market has long been mentally prepared for the "breakup" of both parties, but it is still surprised by such a decisive "divorce". Why has Yuhui Peer achieved 100% independence from Oriental Selection? Will Yuhui Peer be listed after independence? Where will Yuhui Peer and Oriental Selection take their respective paths in the future?
Yu Minhong: "(Walking with Hui) The company is given to Yu Hui"
After issuing three consecutive announcements, Yu Minhong also issued an "Open Letter to Friends of Oriental Selection Shareholders" to fully explain the relationship between Oriental Selection and The reason and process of Hui Peer’s breakup. The
open letter contains a lot of content that has not been made public before. It mentioned the interest arrangements between both parties after the establishment of the Yuhui Peer subsidiary, "After discussion and approval by the board of directors of Oriental Selection, no matter how the Yuhui Peer company operates, Yuhui will be given an attractive guaranteed income (cash + equity) to show that Recognition of Yu Hui’s value In order to ensure that Yu Hui can design the future of Walk with Hui according to his own wishes, and respect his interest in the spread of knowledge and culture, the board of directors and I have no requirements for the benefits of Walk with Hui. He can focus on recommending books, interviewing writers and promoting cultural tourism. At the same time, I promise that in addition to receiving all the guaranteed income, if there is any profit from going with Hui, Yuhui can continue to receive half of the company's net profit."
When Dong Yuhui and Dongfang Xiaosun were directly involved in the essay incident at the end of 2023, a common sentiment in the industry was that Dong Yuhui, as the soul figure, did not receive a salary that matched it. A contrast was that Li Jiaqi led Mei One to grow. They have already become partners, and Simba, Wei Ya, and Yang Ge are the founders of their respective companies.
Yu Minhong mentioned in the article, "At the same time, I promise that in addition to getting all the guaranteed income, if there is profit from working with Hui, Yuhui can continue to receive half of the company's net profit." In comparison, even after becoming a subsidiary, Dong Yuhui’s income from the live broadcast room with Hui is less than that of Li Jiaqi, Simba, Wei Ya and others.
said in a further explanation issued by Yu Minhong Weibo tonight, "All the income earned by Hehui Peer since its establishment includes all profits. Oriental Selection did not take any money, and all was left to Yuhui and Hehui Peer. Support them to continue to develop."
talked about why he decided to be 100% independent with Hui. Yu Minhong believed that it was mainly due to the increasingly bad public opinion environment of Oriental Selection. "But the complex public opinion disputes, coupled with the guidance and rumors of a few forces with ulterior motives, directly led to the and the estrangement of walking with Fai.”
"This public opinion environment has led to huge uncertainty in the development of both companies. The stock price has fluctuated violently due to external influences, and the company's credibility and reputation have dropped sharply." Yu Minhong said that based on this, he had met and communicated with Yu Hui many times in March this year. “After repeated consultations, we finally decided that after the end of the fiscal year (May 31), I would ask the board of directors for permission to transfer the funds that I traveled with Hui to 100% of the shares are transferred to Yuhui himself." The result of
's breakup today is that after the transaction was completed, Hui Tongtong has no connection with Oriental Selection since then. It is a complete breakup.
Judging from this decisive breakup and the open letter, Yu Minhong is indeed fed up with the public criticism of Dongfang Selection and himself. A complete breakup may reduce the intensity of public opinion attacks in the future. As Dong Yuhui, Bole, on the occasion of the final breakup, practiced his last act of generosity as a Bole by giving it away for free, allowing Dong Yuhui to fly solo in the true sense.
But so far, the breakup has been announced by Oriental Selection and Yu Minhong's unilateral statement, while Dong Yuhui has not made a public statement.
each went his own way, and "Oriental Selection" and "Walking with Hui" became competitors.
Affected by the departure of anchor Dong Yuhui, New Oriental US stocks plummeted before the market opened, falling by more than 6%. In order to stabilize the market value of Oriental Selection, it also proposed a repurchase plan. Oriental Selection stated that it would repurchase company shares worth no more than 500 million yuan in the open market from time to time within a year.
From the perspective of capital market actions, the breakup incident is detrimental to Dongfang Selection. But perhaps as far as Yu Minhong is concerned, an incomplete breakup will lead to all the bad influences that will not only affect Dongfang Selection, but also restrict the development of Peer with Hui. From then on, Peer with Hui can develop completely freely. According to intellectual anchor Dong Yuhui Go forward on the set route.
In fact, since Yuhui Peer was established as a subsidiary of Oriental Selection, its development momentum has already surpassed the latter. Public data released by Cicada Mama shows that on the list of Douyin masters selling goods for the 6.18 Big Sale, Youhui ranks third; Oriental Selection only ranks 11th.
Another recent big move of the company is that the company’s live broadcast room welcomed Yu Chengdong, Huawei’s managing director and chairman of smart car solutions bu, to talk with Dong Yuhui. According to relevant data, Huawei products were broadcast during the conversation. Sales during the period exceeded 100 million yuan.
In an ideal world, after being 100% independent, Walk with Hui will be more free to live broadcast according to Dong Yuhui's favorite routes in the future: traveling around mountains and rivers, recommending authors and new books, and talking with celebrities. Dong Yuhui has revealed in the live broadcast room more than once that he does not like selling goods. In fact, Dong Yuhui started his career by completing the transformation of selling goods through dialogue and knowledge sharing. After the separation of
, Peer with Fai and Oriental Selection inevitably became competitors in the same industry.
The pressure is on Oriental Selection. Previously written by Blue Whale News, "The Live Broadcast Story of Oriental Selection is Getting Harder and Harder to Tell" mentioned that the ideal business of Oriental Selection is to build itself on the traffic live broadcast room and build itself into a retail company with its own supply chain .
Oriental Selection is indeed the most determined and farthest self-operated company among the live broadcast agencies. On June 19, Oriental Selection released relevant self-operated results: the second half of the fiscal year 2024 (2023 From December to May 2024), Oriental Selection's self-operated product GMV exceeded 3.6 billion yuan, a year-on-year increase of 108% and a month-on-month increase of 74%.
For now, heavy investment in self-operated products will lower gross profit margins, increase contract performance risks, and affect the capital market's valuation of Oriental Selection. Dongfang Selection's self-operated business has not yet reached the stage of establishing a scale advantage, so it is still in the investment period.
Yu Minhong encouraged both live broadcast rooms in the open letter, saying, "I believe that after experiencing various storms and uncertainties in the past, Dongfang Selection and Peer With Hui will definitely embark on a path of stable development and contribute to the prosperity of the motherland. Make our due efforts and contributions to prosperity, knowledge dissemination and cultural promotion."
This is naturally a beautiful expectation and vision. But starting from today, the direction of the story becomes different: Yu Minhong controls the direction of New Oriental and Oriental Selection, and Dong Yuhui is responsible for the fate of walking with Hui.
