On July 25, Dong Yuhui announced his resignation from Oriental Selection . At the same time, Dong Yuhui acquired 100% of the shares of Hehui Peer from Oriental Selection at a cost of RMB 76.59 million. As a result, Oriental Selection's wholly-owned subsidiary Hui Peer will be officially independent from Oriental Selection, with Dong Yuhui personally holding 100% of the shares. In the eyes of industry insiders, this is one of the few big IPs and companies that can finally "break up" with dignity. For this reason, Yu Minhong gave up huge benefits and showed a "big picture beyond expectations."
On the afternoon of July 26, Oriental Screening held a shareholder exchange conference call. Yu Minhong said in the conference call that if Walk with Fai and Oriental Selection are not separated, they may strangle each other in the future. Yu Minhong believes that with the independence of Hehui Peer, various issues involving the two companies, internal conflicts, and the complexity after the involvement of external forces have all been resolved at once.
"Send Dong Yuhui a kindness" Dong Yuhui will receive all the net profit rewards of Peer With Hui
On the occasion of the "breakup" of Peer With Hui and Oriental Selection, Yu Minhong revealed on his personal public account that in order to express his gratitude to Dong Yuhui, in addition to having already paid In exchange for all the promised benefits, he has sincerely requested the board of directors and the remuneration committee and obtained approval to reward Dong Yuhui with all the net profits from the company.
What is the amount of this reward? The announcement of Oriental Selection’s sale of Hehui Peer also disclosed Hehui Peer’s financial data for the first time. During the period from December 22, 2023 to June 30, 2024, the profit before tax of Hehui Peer was 189 million yuan, and the net profit was 141 million yuan. This also means that the reward mentioned by Yu Minhong may be as high as 140 million yuan.
However, some netizens said that Yuhui Peer (Beijing) Technology Co., Ltd. was established on December 22, 2023. The profit miracle created in just 7 months is itself the result of the efforts of Dong Yuhui’s team.
Because what can be compared with it is the profit of Oriental Selection. Although Oriental Selection has not released its latest financial report, according to the semi-annual report from June 1 to November 30, 2023, during this period, Oriental Selection’s total revenue was 2.795 billion yuan, a year-on-year increase of 34.4%; net profit was 249 million yuan. , down 57.4% year-on-year; during the reporting period, the total GMV of Oriental Selection was 5.7 billion yuan.
Oriental Selection’s net profit from June 1 to November 30, 2023 was 249 million yuan, while Hehui Peer’s net profit from December 22, 2023 to June 30, 2024 was 141 million yuan. From this, it is not difficult to see that Peer with Hui’s contribution to the performance of Oriental Selection is self-evident.
Dong Yuhui also commented on this, "I personally and Hehui Peer are very grateful to Mr. Yu." It is understood that in order to ensure the normal operation of Hehui Peer's business, Oriental Selection will deliver the developed information system to Hehui Peer for free with the approval of the board of directors. use.
Yu Minhong revealed that for Oriental Selection, there is no use in leaving the company with Hui Peer, so it decided to give Dong Yuhui a goodwill gift. The more than 70 million yuan will be carried out through some kind of cooperative relationship between New Oriental and Dong Yuhui. Pay.
“I won’t explain the specifics, but the money was ultimately paid by New Oriental through its partnership with Dong Yuhui. It will comply with all regulations of New Oriental’s listed companies in the United States and will not infringe on any interests of Oriental Selection. "And Yu Minhong promised that he would not participate in the capital operation, investment and development of Hui Peer at any time in the future. New Oriental will not hold any shares in Hui Peer now or at any time in the future.
In the eyes of industry insiders, this is a rare case where a big IP and a company can finally "break up" with dignity. To this end, Yu Minhong gave up "huge benefits" and revealed a "big picture beyond expectations."
Why Oriental Selection needs to "de-Dong Yuhui" mechanism and profit distribution are the focus issues faced by big IP
Affected by the news of Dong Yuhui's solo career, Oriental Selection's stock price plummeted after the opening on July 26. As of closing, the stock price was HK$9.5, down 23.39%. In this regard, Yu Minhong revealed that he bought the company's shares with real money during the New Oriental Online period, which also proved that he would run and develop the company very seriously.
"Even if he foresees the shock in the capital market, Yu Minhong finally makes the decision to let go of Dong Yuhui, which shows Yu Minhong's determination to cut off this time." Some people in the industry commented this way.
But as a company relying on the Internet, the power of public opinion often affects the company's development. Yu Minhong said that the communication between him and Dong Yuhui has so far been without any obstacles, but the complicated public opinion disputes, coupled with the guidance and rumors of a few forces with ulterior motives, directly led to the estrangement between Oriental Selection and Walking with Hui. "This public opinion environment, This 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. "
On July 21, Hehui Peer relocated from the New Oriental headquarters to Internet Finance in Haidian District, Beijing. Center 3 floors. The map shows that the location is more than 200 meters away from the New Oriental Building and is next to the Douyin headquarters office area.
Although Yu Minhong and Dong Yuhui were very restrained in expressing the reasons for their "breakup", in the eyes of some industry insiders, this is also inevitable. Qunxiang founder Liu Siyi said on his video account, "IP must be independent. I can understand Dong Yuhui very well, because an IP with huge energy must participate in the decision-making level, otherwise no one can be his leader or boss. As a An IP carries a lot of energy. Any decision-making or the mechanism of any large company is an obstruction. "
" In addition to mechanism issues, interest distribution is also a focus issue faced by large IPs. At the end of last year, when the "Little Composition Incident" was brewing, Li Hao, founder of Cass Consulting, once commented, "If the impact and proportion of top Internet celebrities on performance are too high, it will be difficult for the boss to sleep peacefully. MCN's business model is a test of human nature. , if an internet celebrity has too much influence in an mcn, how much revenue should be taken? "
How much revenue should the head anchor take? Luo Yonghao once compared several top mcns, "Qianxun, Xinxuan, and Xiao Yang are all family businesses, and the interests are all in their own family. There is nothing to say. The founder of Mei One is not Li Jiaqi. Li Jiaqi originally only had one Although he has some shares, he has already become a major shareholder (even if he is not the single largest shareholder) after the matter is completed. Although he is certainly not a real entrepreneur to this day, media reports show that Li Jiaqi wants to take most of the company. It’s about profit, this is not the kindness of the boss of Mei One, it’s the fair distribution of market value.”
After the “separation”, can each of them face a big test and can they maintain quality control with Hui? The development direction of Oriental Selection anchors?
After Dong Yuhui parted ways with New Oriental, the respective business development of Hehui Peer and Oriental Selection also attracted attention.
E-commerce expert Uncle Ni told Nandu reporters, “Dongfang Selection became a super company with its super IP. Without the super IP, it would still be a good company, but it would no longer be a super company.”
Data shows that as of July 26, the number of fans of the main Douyin account of Oriental Screening was 29.841 million, while the number of fans of the Douyin account of Youhui Peer rose to 21.758 million.
From the perspective of performance, on the Douyin platform, the data of Dongfang Selection Live Broadcast Room has almost always been crushed by its peers. According to data provided by third-party data platform Cicada Mama, during Douyin 618 this year, Youhui Peer ranked third in sales on the entire platform, far surpassing Oriental Selection, which ranked 15th. And this is the first annual promotion since the establishment of Peer With Fai.
But some people question whether He Hui can succeed independently after leaving Oriental Selection. It remains to be seen whether time will test him. Uncle Ni told Nandu reporters that from the perspective of supply chain, if there is traffic with Hui Peer, there will be no shortage of supply chain, and no matter what we do, it will not be too bad. But quality control is still the biggest test, and maintaining quality control is also the biggest challenge to maintaining Dong Yuhui's good reputation. Unlike Hui Peer, which continues to sell third-party products, Oriental Selection has been focusing on self-operated products. As of now, the total number of self-operated products of Oriental Selections exceeds 400, of which 260 are on sale during the same period, and more than 100 products are ranked in the top three of Douyin’s product rankings.
In addition, there is only one live broadcast room with Hui Peer so far, while Oriental Selection has established multiple matrix accounts on multiple platforms.This year, Oriental Selection will add more than 10 vertical accounts on Douyin, and will launch live broadcasts one after another.
On the side of Peer With Hui, Dong Yuhui obviously values the output of culture and tourism content more than bringing goods. As he said himself, "I am very resistant to selling things. I seek truth from facts. I still don't enjoy this job to this day." But now, he wants to transform from a worker and anchor to an entrepreneur, boss, and manager. As Dong Yuhui said in his response, "Without the protection of the port, starting from today, we will sail to the vast sea alone with Hui. The future is unpredictable, so we can only go all out."
In this incident, Yu Minhong Some lessons were also learned. He revealed that just like he never allowed famous teachers to set up independent studios in New Oriental, Oriental Selection will give anchors good enough treatment in the future, but there will no longer be incidents like anchors setting up independent platforms, “because this will lead to certain This kind of tear will also lead to some kind of unavailability. I can say with certainty that the future development direction of our anchors is to develop together, share difficulties, share blessings, develop together, and get rich together. "
" Written by Nandu reporter. Wang Chenchen
