Core Viewpoint - The departure of Sun Dongxu, the former CEO of Oriental Selection, marks a significant turning point for the company, which has been struggling with performance issues and leadership changes since the "small essay" incident two years ago [3][5][20]. Group 1: Departure of Sun Dongxu - Sun Dongxu's resignation was anticipated, with rumors surfacing as early as August 2023, although the company initially denied these claims [4][5]. - His departure is seen as the final resolution to the "small essay" controversy that had plagued the company for two years, leading to mixed reactions from investors regarding the future of the stock price [5][20]. - As of November 6, 2023, Oriental Selection's stock price was HKD 21.44 per share, with a total market capitalization of HKD 22.6 billion, reflecting a 69% decrease from its peak market value of HKD 74 billion in January 2023 [5]. Group 2: Background and Career of Sun Dongxu - Sun Dongxu had a long tenure with the New Oriental Group, spanning 18 years, and held various positions before becoming CEO of Oriental Selection [7]. - His significant career shift occurred after the "small essay" incident in December 2023, which led to his dismissal from the CEO position [11]. - Despite his dismissal, Sun continued to work as a consultant for the company until his recent departure [11]. Group 3: Company Performance and Challenges - Oriental Selection has faced a decline in performance, with a reported revenue of CNY 4.39 billion for the 2025 fiscal year, a year-on-year decrease of 32.7%, and a net profit of CNY 573 million, down 99.67% [16]. - The company's GMV (Gross Merchandise Volume) fell from CNY 14.3 billion to CNY 8.7 billion, a decline of approximately 39% [17]. - The number of employees decreased by 25% compared to the previous year, indicating ongoing challenges within the organization [18]. Group 4: Market Position and Competition - Oriental Selection's main account has struggled to maintain its position in the market, dropping out of the top ten in sales rankings multiple times, while its competitor, Yuhui Tong, has consistently ranked in the top three [17]. - As of November 6, 2023, Oriental Selection had 28.09 million followers on Douyin, significantly fewer than Yuhui Tong's 34.06 million followers, highlighting a growing gap in audience engagement [17]. - The company's transition to an "online Sam's Club" model has faced difficulties, with challenges in supply chain management and membership growth [17][20].

Core Viewpoint - The departure of Sun Dongxu, the former CEO of Dongfang Zhenxuan, marks a significant moment for the company, following the aftermath of the "small essay" incident that had previously put him in the spotlight [1][3][15] Group 1: Departure Context - Rumors of Sun Dongxu's potential departure surfaced in August, but were officially denied by the company at that time [2] - His departure is seen as a conclusion to the ongoing repercussions of the "small essay" incident from two years ago [3][6] - The stock market reaction has been mixed, with some expressing regret over his departure while others fear a decline in stock prices [3] Group 2: Background of Sun Dongxu - Sun Dongxu had a long tenure of 18 years within the New Oriental system, starting as a teacher and eventually becoming the CEO of Dongfang Zhenxuan [4] - His annual compensation, including stock options, was reported to be 16.39 million yuan, and he had previously cashed out approximately 2.17 billion HKD in just two days [7] Group 3: Company Performance and Challenges - Dongfang Zhenxuan's stock price has significantly decreased from a peak market value of 740 billion HKD in January 2023 to 22.44 HKD per share, representing a 69% decline [3] - The company has faced a substantial drop in revenue, with a reported 32.7% year-on-year decline in fiscal year 2025, and a net profit drop of 99.67% [11][12] - Key operational metrics show a decline in GMV from 143 billion to 87 billion, a decrease of approximately 39% [11] Group 4: Talent Departure and Market Position - The company is experiencing a talent exodus, with significant figures like Dong Yuhui and now Sun Dongxu leaving, which may impact its market position [9][11] - The online audience for Dongfang Zhenxuan's live streams has diminished, with current viewer numbers around 3,700 compared to over 10,000 two years ago [13] - The company is struggling with its transformation into an e-commerce model, facing challenges in supply chain management and membership growth [12][15]