Core Viewpoint - Oriental Selection (1797.HK) reported a significant turnaround in its financial performance for the fiscal year 2025, achieving a net profit of 6.2 million yuan after a loss in the previous half-year, driven by the growth of its self-operated products and live e-commerce business [1][2]. Financial Performance - Total revenue from continuing operations for fiscal year 2025 reached 4.4 billion yuan, with a net profit of 6.2 million yuan, compared to a net loss of 96.5 million yuan in the first half of 2025 [1]. - The net profit from continuing operations, excluding the financial impact of the sale of a subsidiary, was 135.4 million yuan, representing a year-on-year increase of 30% [1]. - The gross margin for continuing operations improved from 25.9% in fiscal year 2024 to 32% in fiscal year 2025, attributed to the healthy development of self-operated products and live e-commerce [1]. Business Growth Drivers - Self-operated products became a major growth driver, contributing approximately 43.8% to the total GMV (Gross Merchandise Volume) of 8.7 billion yuan for fiscal year 2025 [2][3]. - The GMV from Douyin accounted for a significant portion, while the contribution from the Oriental Selection App increased from 8.4% in fiscal year 2024 to 15.7% in fiscal year 2025 [2]. - A total of 91.6 million paid orders were recorded for self-operated and third-party products on Douyin in fiscal year 2025 [2]. Product Development and Service Enhancement - The company launched 732 self-operated products in fiscal year 2025, up from 488 in the previous year, expanding its product categories to include health foods, pet products, and apparel [3]. - To enhance service experience, the first cold chain warehouse, "Oriental Selection Central China No. 1 Warehouse," was put into operation, effectively reducing logistics time [3]. - The integration of AI models and big data platforms has been emphasized for improving data management and resource allocation, supporting future development and innovation [3]. Membership and User Engagement - The number of paid subscribers for the Oriental Selection App reached 264,300, with user satisfaction hitting a record high of 98.7% [4]. - The company has improved its membership system by offering renewal benefits, introducing "friend cards," and providing exclusive promotions for members [4]. - The app has also established community forums and book clubs to enhance user interaction and engagement [4]. Future Outlook - The company aims to continue expanding its user base for the Oriental Selection App and increase monthly active users (MAU) and registered members [4][5]. - Plans to optimize the membership system and expand product offerings by introducing more quality domestic and international brands are in place [5]. - The commitment to providing high-quality products and services remains a core focus for the company's future growth [5].
东方甄选财报：2025财年实现扭亏为盈，自营品成增长主要动力