Core Viewpoint - The article discusses the recent turmoil surrounding Dong Yuhui's departure from Dongfang Zhenxuan and its impact on the company's stock price and financial performance, highlighting the challenges and strategic shifts the company faces in the live e-commerce industry [2][4][6]. Financial Performance - Dongfang Zhenxuan's revenue for the fiscal year 2025 was 4.4 billion RMB, down 32.7% from 6.5 billion RMB in the previous year [5][8]. - The company's total GMV decreased from 143 billion RMB to 87 billion RMB, with paid orders on Douyin dropping from 1.81 billion to 916 million [9][8]. - Despite a net profit of only 6.2 million RMB, the company showed signs of recovery by turning a profit in the second half of the year after a loss of 96.5 million RMB in the first half [8][10]. Strategic Shifts - The company is increasing its focus on self-operated products, with self-operated GMV accounting for 43.8% of total sales, up 3.8 percentage points from the previous year [9][10]. - Dongfang Zhenxuan launched 732 self-operated products, a nearly 50% increase from 488 the previous year, expanding its product categories [9][10]. - The company aims to reduce its reliance on Douyin, with 60-70% of sales currently dependent on the platform, and is investing in its own app to enhance membership and customer engagement [28][29]. Market Reactions and Challenges - The stock price of Dongfang Zhenxuan experienced significant volatility, with fluctuations exceeding 40% in a short period due to market rumors and uncertainties surrounding management changes [4][13]. - The departure of key figures like Dong Yuhui has raised questions about the company's ability to maintain its competitive edge in a market heavily reliant on individual influencers [21][36]. - The administrative expenses increased by 22.5% to 484.8 million RMB, partly due to profit distribution related to Dong Yuhui's exit [12][13]. Industry Context - The article positions Dongfang Zhenxuan's struggles as reflective of broader challenges in the live e-commerce sector, where the relationship between influencers and companies is increasingly complex [25][36]. - The company is attempting to transition from a reliance on live streaming to a more sustainable business model focused on product quality and supply chain management [26][28]. - The success of competing platforms like "Yuhui's Journey" demonstrates the potential for personal brands to thrive independently, posing a challenge for Dongfang Zhenxuan to redefine its strategy [30][34].