From "little composition" to "peaceful breakup", Dong Yuhui completely walked out of Oriental Selection , which seems to be an inevitable ending. As soon as the Oriental Screening announcement came out on July 25, netizens were in a state of ups and downs, and the comments section of the Live With Fai studio was almost flooded with gifts.
Oriental Selection issued two announcements that day. One said 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." The other said that "Oriental Selection agreed to sell 100% of the shares of Hui Peer. To Dong Yuhui, the price is 76.5855 million yuan."
According to the announcement, the parties to the agreement will make their best efforts to complete the sale of Yuhui Peer by Oriental Selection within 6 months. The transaction consideration Dong Yuhui will be paid in two installments.
According to Brokerage China, Dong Yuhui said that Hehui Peer will be able to maintain company operations and expenses such as rent and employee wages for a period of time in the future.
Immediately afterwards, Yu Minhong, chairman of the board of directors of Oriental Selection, issued an open letter to shareholders, restoring the behind-the-scenes story of the sale, "In order to ensure a better development stage for Hui Peer and avoid business conflicts and public opinion disputes, the two of us have gone through After repeated discussions, it was finally decided that after the end of the fiscal year (May 31), I would ask the board of directors for permission to transfer 100% of the shares in Yuhui to Yuhui himself." As of press time of the Beijing Business Daily reporter, Youhui Peer ranks first in Douyin’s overall list of goods delivery, and Oriental Selection ranks fifth.
A Beijing Business Daily reporter noticed that after topics related to "Dong Yuhui's resignation" sparked hot searches, the number of followers of the Douyin account "Walking with Hui" increased by 6,000 in 30 minutes.
"Oriental Selection" Douyin account lost about 1,000 followers in 15 minutes.
"We will be rivals from now on." Bida analyst Li Jinqing was not surprised by this result. According to Oriental Selection’s announcement, Beijing New Oriental Xuncheng Network Technology Co., Ltd., the merged affiliated entity of Oriental Selection, agreed to sell 100% of the shares of Yuhui Peer to Dong Yuhui for a consideration of 76.5855 million yuan. Dong Yuhui 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.
Oriental Selection emphasized that in addition to fully paying the promised benefits and compensation to Dong Yuhui, Yu Minhong 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 With Fai 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.
In an open letter to shareholders, Yu Minhong revealed, "The public opinion environment has led to huge uncertainties 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. In order to ensure that we will have a better future with Hui." A good development stage to avoid business conflicts and public opinion entanglements. After repeated discussions, the two of us finally decided that after the end of the fiscal year (May 31), I would ask the board of directors for permission to transfer 100% of the shares of Yuhui to Yuhui. myself". Yu Minhong said.
Yu Minhong also said, "In order to express my gratitude to Yuhui, in addition to paying all the promised benefits, I have sincerely requested the board of directors and the remuneration committee and obtained approval to reward Yuhui with all the net profits of Travel with Hui. At the same time, Yuhui insists There is equity purchase money required by Hui Peer, and I have also arranged to pay it in a manner that complies with the rules of listed companies and the company's articles of association."
"Yu Minhong is actually quite kind. He has been escorting Dong Yuhui all the way, and the price is not expensive. Maybe the ideal balance result has not been achieved." Li Jinqing told a reporter from Beijing Business Daily.
It is worth noting that after the open letter, Yu Minhong left a message, "Yuhui holds the equity purchase money required by Hui Peer, and I also arrange the payment in a manner that complies with the rules of listed companies and the company's articles of association." What this sentence means is that I arranged the money for Yu Hui to purchase the company, and the company gave it to Yu Hui.
"I personally and Hui Hui are very grateful to Teacher Yu." Dong Yuhui responded in the comment area half an hour later. He also published a long article reviewing the experience of working with Hui and thanked Yu Minhong again.
Judging from the time points of the financial report release of Oriental Selection and New Oriental in previous years, the end of August and the end of July were the disclosure times of the two companies' annual reports respectively. The release of the resignation announcement comes just before the two listed companies are about to disclose their annual reports. Why did they choose this time to release the big news? Many people in the industry said they didn’t understand. Yu Miao, founder of
Sulu Consulting, said in an interview with a reporter from Beijing Business Daily that issuing a timely resignation announcement is in line with the disclosure principles of listed companies, but this move may also have an impact on Oriental Selection's subsequent market data performance.
New Oriental’s U.S. stock market once fell by more than 6% before the market opened due to the news of Dong Yuhui’s resignation and Yu Hui’s independence. Talking about the future stock price trends of Oriental Selection and New Oriental, both Yu Miao and Ge Wenwei said that Oriental Selection may usher in a period of stock price fluctuations.
There is no doubt that from the first live broadcast of "breaking the circle" to the current "peaceful breakup", Dong Yuhui has always been the number one anchor of Oriental Selection. After becoming independent this time, the related income will no longer be included in Oriental Selection, which is also a new challenge for Oriental Selection.
In Yu Miao’s view, after independence, Oriental Selection and Youhui Peer will become each other’s biggest competitors. Ge Wenwei, a partner of
Whale Capital, said that Dong Yuhui's "breakup" with Oriental Selection is an inevitable outcome. Dong Yuhui's complete departure may also be a good thing for Dongfang Selection and New Oriental. From the sudden explosion to the present, Oriental Selection and Dong Yuhui have experienced various public opinions, and the company's stock price has also been on a roller coaster. After this change, both parties have to start over, which may be a more beneficial choice for the long-term development of the two companies. In Ge Wenwei's view, at this stage and in the next stage, Oriental Selection should think more about how to develop its business for a longer period of time when the platform traffic has bottomed out and super IPs are no longer available.
In order to learn more about Dong Yuhui’s resignation, He Hui’s independence, and the future development of Oriental Selection, a reporter from Beijing Business Daily sent an interview message to the staff of Oriental Selection, but as of press time, no reply has been received. Reporters will also continue to follow the latest business developments of the above-mentioned companies.
Source: Beijing Business Daily
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