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A few days after moving, Dong Yuhui and Yu Hui went to "separate" from Oriental Selection.
html On July 25, Oriental Selection (1797.hk) announced that Dong Yuhui has decided to no longer serve as an employee of the company and the senior management of a consolidated affiliated entity of the company. In addition to paying the promised benefits and subsidies to Dong Yuhui, the company has sought approval from the board of directors and the remuneration committee of the board of directors to distribute all remaining undistributed profits of Peer to Dong Yuhui to Dong Yuhui. In order to maintain the normal operation of Hehui Peer, the company will provide self-developed information systems to Hehui Peer for free.also left Dongfang Selection, and the entire equity of Hehui Peer was sold to Dong Yuhui at a price of 76.5855 million yuan. The announcement also disclosed that from the establishment of Hehui Peer on December 22, 2023 to the end of June this year, in half a year, Hehui Peer's net profit was 141 million yuan.
Subsequently, Yu Minhong also issued an open letter saying, "All the income earned by Hehui Peer since its establishment includes all profits. Oriental Selection has not taken any penny, and it has all been left to Yuhui and Hehui Peer to support their continued development." This is also This means that Dong Yuhui will receive a "breakup fee" of more than 200 million yuan from Oriental Selection.
At the shareholder conference call on July 26, Yu Minhong said that his initial idea for was that after the establishment of Hui Peer, the two platforms would not interfere with each other and the backend systems would support each other. However, in the past six months, Walking with Fai and Oriental Selection have been hit by cyber storms and have no peace. A few people continue to fan the flames, and there are also many interest forces. Fans on both sides form opposing forces.
Yu Minhong said that the power of public opinion has always been around, and there may be factors such as competitors and capital background manipulation behind it, but this is just speculation and there is no evidence yet. He also expressed his belief that this breakup will be of great benefit to the future development of Oriental Selection.
01
Dong Yuhui’s new challenge
Yu Minhong said in the open letter, “About March, I and Yuhui met many times and continued to discuss the follow-up development plan. I felt that the complex external and internal environment faced by would not only make The company's operations are in trouble, which has also caused harm to the long-term development of individuals and the company. In order to ensure a better development stage for Hui Peer and avoid business conflicts and public disputes, after repeated consultations, it was finally decided to end the fiscal year (May 31). After that, he asked the board of directors to agree to transfer 100% of the shares of Hehui Peer to Dong Yuhui himself. "Yu Minhong helped Hui Peer from the establishment of
to his departure.
“In order to ensure that Yuhui and Yuhui Peering can carry out their work in a timely manner, under my coordination, we quickly registered the company Yuhui Peering. Within a few days, we freed up more than a thousand square meters of space for Yuhui Peering. In the office space, a mature team of about 60 people has been organized, providing vending system, pallet supply and a large number of equipment and facilities support. "
html On July 15, Hehui Peer announced that it would move to a new office located in the Internet Finance Center in Zhongguancun, Beijing. The center has three floors and a total area of approximately 2,100 square meters.Yu Minhong said, " and Hui Peer need new office space. From site search, transaction negotiation, and work area decoration, all were completed by New Oriental Asset's professional team. In order to shorten the construction period, they worked day and night to complete the task as scheduled. " He added It was mentioned that the support for colleagues with Hui, including the matching of government resources and business opportunities, remains as always.
For Dong Yuhui, he needs to independently initiate development with Hui in the future. The core competitiveness of e-commerce is the supply chain. Some people believe that the advantage of Oriental Selection lies in the industrial chain layout in agricultural products, cultural tourism and other fields, which ensures the stable operation of Oriental Selection. Dong Yuhui also needs to build his own supply chain for Yuhui.
It is worth mentioning that as the person in charge of the company, Dong Yuhui needs to consider more issues such as product selection, quality control and supply chain. Selling goods in the live broadcast room may no longer be the focus.
In the "I Love Me, It's Great" program broadcast in June, Dong Yuhui also said frankly, " I am very resistant to selling things. To be honest, I still don't enjoy this job to this day. , although I feel that my The work is supportive but not joyful, which may be due to his previous personality and career.”
He also said that he dislikes the word “Internet celebrity”; his parents have been harassed for a long time because of the live broadcast. , some suppliers went to their hometowns in rural areas to find their parents because there was no hope of contacting them, so the doors of their hometowns were often closed.
According to statistics, during the 618 promotion, which was the most important period for e-commerce at that time, Dong Yuhui only participated in less than 10 live broadcasts, and was directly absent from many vertical categories such as beauty. This also made the outside world aware of his "retirement" towards live streaming.
Whether Dong Yuhui can maintain the stickiness between his fans and the Live broadcast room of Youhui, whether he can build a supply chain and manage the management of Youhui well will be Dong Yuhui's biggest challenge in the future, and it will also be his " An opportunity to "retreat" behind the scenes.
02
Oriental Selection’s losses
The outside world is paying more attention to the future development of Oriental Selection. After the announcement of Dong Yuhui’s resignation, its stock price plummeted 23.39% on July 26, closing at HK$9.5 per share.
Bank of Communications International Research estimates that from January 2024 to June 30, GMV with Hui Ping will be about 3.5 billion yuan. Based on a 13% commission rate, the revenue contribution will be about 410 million yuan, the profit will be 140 million yuan, and the profit rate will be 33% . After the sale of and Hui Peer, with the strategy of Dongfang Selection’s self-operated products and other matrix accounts unchanged, it is expected that the GMV, revenue and profit will be reduced by 34%, 9% and 20% respectively in fiscal year 2025.
It can be seen that Dong Yuhui’s departure has had an impact on Oriental Selection. And Yu Minhong didn't want to repeat this scene again. On July 26, Oriental Selection held a shareholder exchange conference call. Yu Minhong said that Company will try its best to cultivate anchors, but it will never allow anchors to set up personal platforms like Dong Yuhui. This phenomenon will definitely be avoided and put to an end. "The company hopes to build the anchors into a team that can play wherever they want. As far as I can see, the anchors of Oriental Selection will no longer go out to build a platform independently." In the future, Oriental Selection will never participate in shares or hold shares with Hui Peer. any shares.
In the past, Dong Yuhui’s popularity led to the emergence of Oriental Selection. According to the Guosen Securities report, from June 2022 to June 2023, Dong Yuhui’s (linear) popularity contribution rate to the Oriental Selection live broadcast room was around 300%, which is much higher than other anchors.
It is precisely because of the development of live broadcast e-commerce business that Oriental Selection has emerged from the quagmire. However, the "little composition" incident in December 2023 created a "gap" between Dong Yuhui and Oriental Selection. In the end, the matter ended with Yu Minhong concurrently serving as the CEO of Oriental Selection, and Dong Yuhui becoming the senior partner of Oriental Selection. However, Dong Yuhui also left the Oriental Selection live broadcast room, had his own independent team, and started broadcasting in the Live broadcast room with Hui.
In the eyes of the outside world, "breaking up" is a matter of time. In fact, Oriental Selection has been striving to minimize the impact of Dong Yuhui's "departure".
Oriental Selection is positioned as "a live e-commerce platform that focuses on carefully selecting high-quality products for customers; a high-quality product and technology company that continues to provide 'Oriental Selection' self-operated agricultural products as its core products; a company that provides customers with a pleasant experience Cultural Communication Company”. is not positioned as an mcn institution, but as a comprehensive e-commerce platform focusing on live broadcasting.
In order to make the e-commerce business more stable, we also get rid of the dependence on the head anchors. Oriental Selection has increased the layout of self-operated products. As of November 30, 2023, the number of Oriental Selection's self-operated products exceeded 264. According to media reports, Oriental Selection revealed at a self-operated new product launch conference on June 19 that in the second half of the fiscal year 2024 (December 2023 to May 2024), the GMV of Oriental Selection’s self-operated products exceeded 3.6 billion yuan, a year-on-year increase 108%, a month-on-month increase of 74%. The total number of self-operated products of Oriental Selection exceeds 400, with 260 models on sale during the same period.
In the six months ended November 30, 2023, the total revenue of Oriental Selection's self-operated products and live broadcast e-commerce division was 2.41 billion yuan, of which the total revenue of direct-operated products reached approximately 1.9 billion yuan, accounting for 78.84% .
, on the other hand, is a rich live broadcast matrix. In addition to the main account of Oriental Selection, Oriental Selection has opened Oriental Selection self-operated products, mainly self-operated brands, Oriental Selection Beautiful Life, mainly focusing on beauty and personal care, daily products, and cultural tourism and regional specialties. Oriental Selection looks at the world. Oriental Selection, which focuses on wine, will introduce Oriental Selection, which specializes in wine, and Oriental Selection, which recommends books. At the same time, it also began to test the hourly delivery business. With the continuous improvement of the live broadcast matrix, it also has an anchor matrix composed of Tianquan, yoyo, Dundun, etc.
However, there is still a clear gap between the influence of these anchors and Dong Yuhui. According to
’s new TikTok data, in the past 30 days, the main account of Oriental Selection has lost 249,700 followers to 29,860,200, while Youhui Peer has gained 1,243,900 followers to 21,601,500. Daduoduo showed that in the first live broadcast of the new office on July 21, the sales of Hehui Peer exceeded 75 million yuan.
Whether Oriental Selection can ensure the stability of its business after "losing" Dong Yuhui will be a test for Yu Minhong and other management. In a sense, this will also be a "big test" for Oriental Selection as an e-commerce company to get rid of its dependence on the leading anchor path.
Author | Taro
Source | Zhengtan Finance (id: teccj6)
