Core Viewpoint - After the release of its fiscal year 2025 results, Dongfang Zhenxuan's stock price has dropped significantly, reflecting investor concerns about the company's performance and leadership changes [1][3]. Financial Performance - For the fiscal year 2025, Dongfang Zhenxuan reported total revenue of 4.4 billion yuan, with a net profit of 6.2 million yuan, recovering from a net loss of 96.5 million yuan in the first half of the fiscal year [1]. - Excluding the financial impact of the sale of Huixing, the net profit for the continuing operations increased by 30% year-on-year to 135.4 million yuan [1]. - The gross margin for continuing operations improved from 25.9% in fiscal year 2024 to 32% in fiscal year 2025, driven by the healthy development of self-operated products and live e-commerce [1]. Business Development - Dongfang Zhenxuan has launched a total of 732 self-operated products, up from 488 in the previous fiscal year, expanding its product range beyond fresh food and snacks to include health and nutrition products, pet food, and clothing [2]. - The total GMV (Gross Merchandise Volume) for self-operated products and live e-commerce in fiscal year 2025 reached 8.7 billion yuan, with self-operated products accounting for approximately 43.8% of the total GMV [1]. Market Reaction - Following the earnings report, Dongfang Zhenxuan's stock price fell by 11% to 28.08 HKD, with a market capitalization dropping below 30 billion HKD [1]. - Goldman Sachs downgraded the company's GMV forecast for fiscal years 2026 to 2027 by 1% to 3%, while raising revenue forecasts by up to 10% due to the increased contribution from self-branded products [2]. Leadership and Public Perception - There was speculation regarding the departure of former CEO Sun Dongxu, which was clarified by the company as he is currently on leave and has not left the organization [3]. - The relationship between Dongfang Zhenxuan and its investors is fragile, especially after the departure of key figures like popular host Dong Yuhui, which has affected market confidence [3].
东方甄选股价大跌11%