Core Viewpoint - Allegations against New Oriental Group CEO Zhou Chenggang regarding misappropriation of company interests through related-party transactions have led to regulatory investigation, which could impact the company's operations and stock performance [1] Company Summary - New Oriental Group has publicly denied rumors regarding CEO Zhou Chenggang and stated that claims about the company's commission rate exceeding 30% are significantly inaccurate, with the actual average commission rate being below 20% [2] - In response to the rumors, the company has initiated legal actions and reported a significant stock price fluctuation, with shares reaching a high of 53.70 HKD before closing at 34.32 HKD, reflecting a drop of 20.89% [3][4] - The market capitalization of New Oriental Group decreased by approximately 9.5 billion HKD in one day, despite a year-to-date stock price increase of 90.88% [5]

Core Viewpoint - The stock price of Oriental Selection experienced significant volatility, initially surging over 23% before plummeting by 20.89% amid rumors of regulatory investigations involving CEO Zhou Chenggang [1][7]. Group 1: Stock Performance - Oriental Selection's stock saw a dramatic increase of over 23% in the morning session, followed by a sharp decline of 20.89% in the afternoon [1][7]. - The stock's performance reflects market sensitivity to rumors and potential regulatory scrutiny [1]. Group 2: Rumors and Responses - Reports emerged suggesting that CEO Zhou Chenggang might be involved in related party transactions under investigation by regulatory authorities, which Oriental Selection has categorically denied as rumors [1][3]. - The company’s investment relations director stated in a group chat that there is no truth to the rumors, emphasizing that they are in a quiet period regarding their annual report [1][3]. - Founder Yu Minhong also labeled the claims as completely false, and the company has initiated legal actions against the spread of such rumors [3]. Group 3: CEO Background - Zhou Chenggang, CEO of New Oriental Education Technology Group, has a diverse background, including roles as a teacher and journalist before joining New Oriental in 2000 [6]. - He has held various leadership positions within the company and was recognized in the Forbes China Best CEO list in 2024 [6].

Core Viewpoint - New Oriental Group CEO Zhou Chenggang is under investigation for allegedly misappropriating company interests through related party transactions, leading to panic selling among investors [1][4]. Company Background - Zhou Chenggang has been with New Oriental since 2000, serving in various roles including principal and president, and became CEO in 2016 [1][3]. - Zhou and co-founder Yu Minhong have a long-standing partnership, having met during their high school entrance exams in 1980 [1]. Market Reaction - On August 19, New Oriental's stock price plummeted by 20.89%, closing at HKD 34.320 per share, with a total market capitalization of HKD 359.13 billion [4][5]. - The stock opened at HKD 43.000 and reached a low of HKD 34.000 during the trading session, with a trading volume of 225 million shares [5]. Company Response - The investor relations director of Oriental Selection, a subsidiary of New Oriental, denied the allegations, stating that the company is in a quiet period for its annual report [6]. - In response to rumors regarding high commission rates exceeding 30%, the company clarified that its actual average commission rate is below 20% and has initiated legal actions against the spread of false information [7].

Core Viewpoint - Oriental Selection issued a statement denying rumors related to CEO Zhou Chenggang, stating that the company has initiated legal processes against the rumors [1][4]. Group 1 - On August 19, Oriental Selection's stock price dropped over 20% due to market rumors, closing at 34.32 HKD, a decline of 20.89% from previous highs [4]. - The stock had previously reached a nearly two-year high of 53.7 HKD, reflecting an increase of over 23.5% [4]. - The company's Director of Investor Relations confirmed in a WeChat group that the rumors were false and emphasized that they are still in the quiet period before the annual report [4].

（文章来源：每日经济新闻） 每经AI快讯，8月19日，东方甄选发布辟谣声明称，关于周成刚老师的传闻纯属谣言，关于"东方甄选佣 金率长期超30%"的说法严重失实，东方甄选售卖产品确保高品质和高性价比，实际平均佣金率不到 20%。针对上述谣言，公司已启动报警和司法流程，对于这样的不法行为，我们将一追到底。 ...

Core Viewpoint - There are rumors regarding the CEO of New Oriental Group, Yu Minhong's long-time partner, Zhou Chenggang, being investigated by regulatory authorities for allegedly misappropriating company interests through related-party transactions, although the company has labeled this as "pure rumors" [1] Company Performance - Oriental Selection is set to release its full-year results for the fiscal year ending May 31, 2025, on August 22 [1] - For the fourth quarter of fiscal year 2025, Oriental Selection reported revenues of $150 million, representing a year-on-year decline of approximately 30%, although the decline rate has narrowed quarter-on-quarter [1] - The Non-GAAP operating profit was approximately 79 million RMB, with an operating profit margin of about 7%, showing a quarter-on-quarter improvement [1] - The company has shown continuous improvement in profitability despite challenges such as the departure of key hosts and the separation from Hui Tongxing [1] Industry Insights - Guosen Securities highlighted the "Sam's paradigm" in the current consumer market, which is characterized by diversified supply, transparent information, and rational demand [1] - Companies that can offer high-cost performance products and have a mature membership system, such as Sam's Club, Haidilao, and Oriental Selection, are expected to have enhanced advantages in this market context [1] - Recent operational improvements at Oriental Selection, including successful expansion into new product categories and enhanced quality of self-operated business growth, are seen as evidence of the growth logic for such companies [1]

Core Viewpoint - The stock price of Oriental Selection dropped significantly on August 19 due to rumors regarding the CEO of New Oriental, Zhou Chenggang, being investigated for alleged related-party transactions that could harm the interests of the listed company [1] Group 1 - Oriental Selection responded to the rumors, stating that the claims about Zhou Chenggang being under investigation are false [1] - Zhou Chenggang is known as a long-time partner of Yu Minhong, the founder of New Oriental [1]

Core Viewpoint - On August 19, Oriental Selection's stock experienced significant volatility, initially rising over 23% before closing down 20.89% at HKD 34.32 per share, with a trading volume exceeding HKD 9.3 billion and a market capitalization of approximately HKD 36 billion [1][2]. Group 1: Stock Performance and Market Reactions - The stock price of Oriental Selection saw a cumulative increase of 266% from July to August 18, 2023, but faced a sharp decline on August 19 due to profit-taking by short-term investors [4]. - Analysts noted signs of capital absorption at lower price levels during the sell-off, indicating potential interest from investors despite the volatility [3][4]. - The stock has experienced significant fluctuations in recent years, with a peak increase of over 14 times from June 8, 2022, to February 3, 2023, followed by an 81.37% decline from February 3, 2023, to June 30, 2025 [4]. Group 2: Business Model and Growth Prospects - Oriental Selection's self-operated products have shown strong performance, with an estimated GMV of RMB 870 million in June 2023, a year-on-year increase of 28%, and self-operated product GMV reaching RMB 350 million, up 15% year-on-year [6]. - The company is expected to achieve a self-operated product sales ratio of 39% by June 2025, with 60% of these sales coming from shelf e-commerce channels, indicating a shift away from reliance on live-streaming traffic [6]. - Recent product launches, such as a self-operated brand of sanitary napkins, have been successful, selling 180,000 units within two days of release [6]. - Analysts believe that the improvement in GMV and the growth in paid membership numbers will lead to a more favorable profit structure for Oriental Selection [6]. Group 3: Market Sentiment and Future Outlook - The recent stock surge is attributed to improvements in the company's business model and the overall bullish trend in the Hong Kong new consumption sector [7]. - Despite the positive developments, experts caution that Oriental Selection currently lacks a distinct competitive advantage or "moat" in the market [7].

Group 1 - The stock price of Dongfang Zhenxuan experienced significant volatility, initially surging over 23% in the morning before plummeting to a 20.89% decline by the end of the day [2] - There are reports suggesting that New Oriental's CEO, Zhou Chenggang, may be under investigation by regulatory authorities for potential related-party transactions [2] - Dongfang Zhenxuan has responded to these allegations, stating that they are purely rumors [2]

东方甄选发布微博称，针对谣言，已启动报警和司法流程，对于这样的不法行为，我们将一追到底。 （文章来源：第一财经） ...