Core Viewpoint - The departure of Dong Yuhui has significantly impacted Dongfang Zhenxuan's performance, leading to a substantial decline in revenue and profit for the 2025 fiscal year [1][4][18]. Financial Performance - For the 2025 fiscal year, Dongfang Zhenxuan's revenue from continuing operations was 4.4 billion yuan, and GMV was 8.7 billion yuan, representing year-on-year declines of 32.7% and 39% respectively [1][4]. - The net profit from continuing operations was 6.2 million yuan, a staggering year-on-year drop of 97.5% [1][4]. - Employee count decreased by approximately 25%, with a reduction of 482 employees compared to the previous year [6][7]. Market Position and Competition - Dongfang Zhenxuan's main account has fallen out of the top ten in sales rankings multiple times, with its lowest ranking at 22nd in October of the previous year [2][9]. - In contrast, the account "With Hui" has consistently maintained a top-three position, remaining at the top since November of the previous year [2][10]. Membership and App Performance - The GMV from Dongfang Zhenxuan's self-owned app accounted for 15.7% of total GMV, up from 8.4% the previous year [16]. - The number of paid members increased by only 65,700 in the 2025 fiscal year, a slowdown compared to the 74,800 increase in the second half of the previous fiscal year [2][18]. Operational Challenges - The company is facing multiple challenges in its transformation to an "online Sam's Club," including supply chain management issues and reliance on a single sales channel [2][16]. - The self-operated product's GMV proportion increased from 40% to 43.8%, with total revenue from self-operated products reaching 3.5 billion yuan [6][16]. Management and Strategic Changes - Following Dong Yuhui's departure, the company has acknowledged management issues and is undergoing a recovery phase [4][12]. - The company has implemented cost-cutting measures, resulting in a 17.6% reduction in total salary expenses [6][7].

Core Viewpoint - The departure of Dong Yuhui has significantly impacted Dongfang Zhenxuan's performance, leading to substantial declines in revenue, GMV, and net profit in the 2025 fiscal year [3][5][15] Financial Performance - In the 2025 fiscal year, Dongfang Zhenxuan's revenue from continuing operations was 4.4 billion yuan, a year-on-year decline of 32.7% [3][5] - The GMV for the same period was 8.7 billion yuan, down 39% year-on-year, with both metrics showing a further decline compared to the mid-year results [3][5] - The net profit from continuing operations was 6.2 million yuan, a staggering drop of 97.5% year-on-year [3][5] - Employee count decreased by approximately 25%, with 482 fewer employees compared to the previous year [7][15] Market Position and Competition - Dongfang Zhenxuan's main account has fallen out of the top ten in sales rankings multiple times, with a lowest ranking of 22nd in October last year [3][8] - In contrast, the independent account "Yuhui Tongxing" has consistently maintained a top-three position, achieving the number one spot since November last year [3][8] Strategic Challenges - The company is facing challenges in its transformation to an "online Sam's Club," struggling with supply chain management, channel dependency, and slow membership growth [3][10][11] - The GMV from the company's own app accounted for 15.7% of total GMV, up from 8.4% the previous year, indicating a shift towards self-operated channels [13][14] - Membership growth has slowed, with only 65,700 new paid members added in the 2025 fiscal year, compared to 74,800 in the second half of the previous fiscal year [14][15] Operational Adjustments - The company has implemented cost-cutting measures, reducing total salary expenses by 17.6% to 1.2 billion yuan [7][15] - The gross margin for continuing operations improved from 25.9% to 32% due to increased self-operated product sales, which now account for 43.8% of total GMV [7][15] Brand and Management Issues - The departure of key influencers has led to a decline in user engagement, with the main account losing approximately 186,200 followers [8][9] - Management has acknowledged existing issues, with CEO Yu Minhong admitting to management vulnerabilities following public controversies [4][10]