Once again, facing the spotlight of public opinion, Yu Minhong responded to all doubts.
html On July 26, at the shareholder conference call of Oriental Selection Holdings Co., Ltd. (Oriental Selection, 01797.hk), Yu Minhong, founder of New Oriental and CEO of Oriental Selection, spent more than an hour responding to several major concerns from the outside world. Focus.Previously, Dong Yuhui’s resignation quickly hit the Internet: On July 25, Oriental Selection announced that Dong Yuhui had decided to no longer serve as an employee of the company and as a senior management member of a consolidated affiliated entity of the company. The resignation was due to Dong Yuhui’s career ambitions. , his investment in other businesses and personal time arrangements will take effect on that day.
On January 9, 2024, Dong Yuhui's new account "Walking with Hui" will be launched on time. Visual China Data Map
At this point, "Walking with Fai", which was only established for half a year, and Dong Yuhui officially bid farewell to Oriental Selection. At this time, only 7 months have passed since the "Little Composition" incident at the end of last year.
Why did Dong Yuhui resign? Are star employees suffering from workplace injustice? Are Yu Minhong and Dong Yuhui already at odds? Where will Oriental Selection go in the future? Regarding the above issues, Yu Minhong explained them one by one.
It is worth noting that according to analysis by insiders to reporters from The Paper, according to Yu Minhong's statement at the conference call, Dong Yuhui will receive at least 358 million yuan worth of income after the breakup.
During the conference call, Yu Minhong also expressed his gratitude to all shareholders who have stuck to Oriental Selection Company. "I know that many of our shareholders have suffered a lot of losses during this period. I hope everyone can trust us again. I believe that over time, we will be able to run the company better."
On the same day, Dong Yuhui also released an internal report with Hui The letter responded to the breakup: "May the wind be like the letter, and we will grow together with the sun. Thank you again, Teacher Yu, and hope that everything will go well for him. Also encourage ourselves, and hope that everything will go well for us."
closed as of July 26 , Oriental Selection’s stock price plunged, closing at HK$9.5, down 23.39%.
Yu Minhong Visual China Information Picture
Talking about why "Walking with Hui" was divested: Unavoidable
Yu Minhong said that after last year's "little composition" incident, as the chairman of the company, he knew that Dong Yuhui's value was very important, and he would use all his efforts He won a relatively generous guaranteed income for him and retained Dong Yuhui's trust in him. When
was established with Peer to Hui, in order to ensure that Dong Yuhui could get the shares of Dongfang Selection, a listed company, he did not add Dong Yuhui's share to Peer to Hui's shares, because once he took the shares of Peer to Hui, he would not be able to get them. Go to Oriental Select Shares. In my own prediction, if Hui Peer and Oriental Selection work together in the future, both GMV (total transaction volume) and profits will increase, which also means that the company's overall share value will increase.
Under this premise, Dong Yuhui’s shares in Oriental Selection are undoubtedly more valuable than just the shares in Hui Peer.
"My naive idea at the time was that it would be a good model for the two platforms to not interfere with each other and support each other. Everyone would get their own satisfactory treatment and income." Yu Minhong said frankly, but this matter has been affected by external Severe disturbance in the environment. Since the establishment of Oriental Selection, it has been coerced by the power of online public opinion and has no peace. There are also various interest forces fanning the flames, such as competitors, capital manipulation, etc. "These are all my speculations without specific basis, but the fans of the two platforms have also formed an incompatible situation."
Yu Minhong said that he "I tried my best to please fans on both sides, but I didn't expect that not only was the bowl of water not leveled, but the fire actually burned my head." Voices of "conspiracy", "iron rooster" and "abuse of employees" are constantly being circulated on the Internet.
"I don't care about external comments, but it has indeed had a significant impact on the company's business development, affecting the mentality of the anchors of Oriental Selection, the mentality of managers, and my mentality has been very seriously affected and hurt. The company's status is unstable." , so that "the company and I are in a dilemma, and our strategic layout cannot be implemented."Yu Minhong said that once he appeared in front of the camera, crowds of onlookers would come to abuse him. On the surface, Oriental Selection's revenue was increasing, but the company's stock price was becoming increasingly unstable.
Yu Minhong said that since February this year, he and Dong Yuhui have been discussing the issue of independence. To deal with external forces, one must first settle the internal affairs. When there are already irreconcilable internal conflicts and external forces are coercing internal forces, if they are not separated, They may strangle each other in the future.
"Since Yuhui also has this idea and hopes to have a larger platform, I think it can indeed be considered, although I also think this is a pity, because Dong Yuhui is the core asset of the company in a sense and is also rare. "But in the face of the current situation, I think it is impossible not to consider independence."
Yu Minhong said that New Oriental will become a shareholder in Hehui Peer, which will not happen at any time in the future. In other words, the future situation will become cleaner and complex problems will be solved at once. For Dongfang Selection, it can carry out layout and reforms with great fanfare without worrying about the huge pressure and pain caused by external public opinion.
"Just like when a country has peace, we can talk about development. Although we did pay a lot, we finally ushered in a clearer and more peaceful environment." Yu Minhong said frankly.
On March 22, 2024, Dong Yuhui’s first outdoor live broadcast was also the first stop of “Enter Hubei with Hui” into Wuhan. In the afternoon of that day, Dong Yuhui visited the East Lake Cherry Blossom Garden accompanied by Dai Jianye, a professor at the School of Liberal Arts of Central China Normal University. Visual China Data Map
Talking about Dong Yuhui’s income: He requested that the remaining 140 million yuan be awarded to him
Regarding Dong Yuhui’s income, Yu Minhong said frankly that the specific data cannot be disclosed, but he believes that Dong Yuhui’s current treatment is reasonable and even generous. of.
"The data we have announced is that there is still a net profit of 140 million yuan in the accounts of Yuhui Peer. This 140 million yuan is actually the profit that should have belonged to Oriental Selection after distributing Yuhui's income. According to the previous The agreement refers to the remaining net profit of 140 million yuan after Yuhui distributes 50% of the net profit. "Yu Minhong said that in addition, Dong Yuhui also has a relatively good monthly salary, and the company. The equity granted, so he believes that Dong Yuhui has always been very grateful, because this is already a very good treatment for him.
Why should Dong Yuhui be awarded the 140 million yuan that belongs to Oriental Selection in the agreement? Yu Minhong said that this matter was decided after his proposal and discussion with the board of directors, mainly for two reasons. The first is that Dong Yuhui has made a huge contribution to the development of Oriental Selection, so he will be given a reward after he becomes completely independent. , expressing the company’s goodwill and hoping to pass this goodwill on to society.
In addition, the management of Oriental Selection is no longer an internal issue, but has become a transparent social phenomenon. Therefore, when a star employee who has made great contributions is leaving, it is also a common practice for many companies to give adequate rewards. In addition, in the first half of this year, due to an independent plan, Dong Yuhui did not receive equity, but he was still contributing to Oriental Selection, so it is appropriate to provide some cash subsidies.
"If both parties break up amicably and win a better social reputation, there will be potential cooperation and continued development in the future. This will be the greatest protection of the company's interests." Yu Minhong said frankly.
"Everyone knows that I have been in business for more than 30 years. New Oriental has encountered difficulties, ups and downs, and has experienced more dangerous challenges than this time, but I have led New Oriental out of the difficulties time and time again." Yu Minhong said , "All shareholders who have followed us for a long time will have good returns in the end."
responded to the doubts about the shares: He will never participate in the capital operation of Hui Peer
According to the previous announcement of Oriental Selection, Dong Yuhui (buyer), Beijing New Oriental Xuncheng Network Technology Co., Ltd. The Company (the seller) and Hehui Peer (Beijing) Technology Co., Ltd. (the target company) entered into a sale agreement.Accordingly, the seller agreed to sell, and the buyer agreed to acquire 100% of the equity of the target company for a consideration of 76.5855 million yuan.
Regarding the acquisition amount of more than 70 million yuan, Yu Minhong explained that it did not occupy Dong Yuhui's 140 million yuan in income. This more than 70 million yuan has nothing to do with Dong Yuhui's 140 million yuan profit. It is just the assessed company valuation.
"Since we broke up, as a big brother, I also give Dong Yuhui a further kindness. We decided to pay the more than 70 million yuan through some kind of cooperative relationship between New Oriental and Dong Yuhui. I will not explain the details, but it is in line with New Oriental's All the rules of U.S. stock listings have not infringed upon any personal interests of Oriental Selection and Dong Yuhui.”
Faced with doubts from the outside that he would become a shareholder with Hui, Yu Minhong responded that he did not have any barriers to Dong Yuhui, even though the two parties had different views on business. However, he felt that he and Dong Yuhui were friends forever, "Although I am one year older than Yuhui's father."
"Yuhui very much recognized my opinions and suggestions on business and layout, but it is true that this breakup is not Because this world is not a world for the two of us." Yu Minhong said that as the CEO of Oriental Selection, he promised not to participate in any capital operation and development with Hui Peer at any time in the future, and he must do his best to do so. Go to the mainland to protect the interests of shareholders and employees of Oriental Selection and New Oriental, "But my personal relationship with Dong Yuhui is another matter."
"I personally believe that this spin-off will have huge benefits for the future development of Oriental Selection , although it took some effort, peace was finally achieved," Yu Minhong said.
Talking about cultivating anchors: There will no longer be anchors who set up separate platforms
For Oriental Selection, which lost Dong Yuhui, Yu Minhong believes that the company's current situation is like New Oriental's model at that time, which was led by famous teachers and gradually turned into a normalized business model. , it needs to rely on more outstanding anchors for development.
"After this round of fluctuations, the more than 30 anchors on the Oriental Selection platform are becoming more and more mature." Yu Minhong said that in the future, Oriental Selection will further urge the company to find more outstanding anchors and give the anchors good enough treatment and Incentive and give anchors a good enough platform for development. However, "it is impossible for an anchor to independently establish a platform in Oriental Selection, or to have an operating model like Peer With Hui, because this will lead to some kind of self-interest and some unpredictable results."
"We hope to build the anchors into an excellent team that unites with each other, works together, and fights wherever it goes." "The development direction of the anchors will be the direction of common development. We will share difficulties, share blessings, and develop together. Common prosperity." Yu Minhong said.
talks about future development: It will rely on New Oriental stores to establish a membership store system.
Talking about the overall development strategy, he said that Oriental Selection will "take into account both internal and external considerations" and develop self-operated products and external high-quality products together. In addition, Oriental Selection also has the ambition to sell its products offline. Yu Minhong said that he hopes to rely on New Oriental's approximately 800 ground-level teaching points to explore a model that combines online and offline. He hopes that every city will have a member store of Oriental Selection, so as to increase Oriental Selection's brand exposure and consumer loyalty. Spend.
In terms of obtaining traffic, Yu Minhong said that he has actively participated in cooperation and negotiations with Douyin, and has repeatedly expressed to Douyin’s senior management that Oriental Selection is willing to continue to develop on Douyin. “In the foreseeable future, In the future, Oriental Selection will cooperate more closely with Douyin in various activities and will also receive better support from Douyin."
At the same time, Oriental Selection also has plans to promote matrix-specific accounts. Yu Minhong said that on each independent platform, in addition to the Oriental Selection Large Account, various relatively vertical accounts will be established while ensuring human resources to increase the appeal to special groups and make each matrix account The traffic of the platform can continue to increase.
In addition, regarding the closure of the Douyin comment area, Yu Minhong said that "I can accept rational and reasonable criticism and even accusations", but there are too many unreasonable language and abusive attacks, and said I hope to reopen the comment area "when everything returns to normal".
At the end of the phone call, Yu Minhong expressed his blessings to Dong Yuhui: When my help is needed, as long as it is within a reasonable range, I will go all out to provide help. He also thanked the team of Oriental Selection: "The grievances will definitely make them more mature, make them stronger, and make them more confident and confident in the future. I hope that I can still lead them through thick and thin, to the stars and the sea."
(Source: The Paper)
