Core Viewpoint - Oriental Selection's financial performance for the fiscal year 2025 shows a significant decline in revenue and GMV, indicating challenges following the departure of key personnel and a shift in business strategy towards self-operated products [1][3][10]. Financial Performance - Total revenue from continuing operations for fiscal year 2025 was 4.4 billion yuan, a decrease of 32.7% compared to 6.5 billion yuan in the previous fiscal year [1]. - Adjusted net profit increased by 30% year-on-year to 135.4 million yuan, but this still represents a 46% decline compared to the previous year's net profit of 250 million yuan [3]. - Total GMV for fiscal year 2025 was 8.7 billion yuan, down 39.2% from 14.3 billion yuan in the previous fiscal year [3][7]. Business Strategy - The self-operated product strategy has deepened, with self-operated products accounting for 43.8% of total GMV, becoming the core business engine [4][5]. - The company launched 732 self-operated products, expanding from initial categories to include health and wellness products, pet food, and apparel [5][6]. - The establishment of a cold chain warehouse has improved logistics efficiency, and the integration of AI and big data is enhancing supply chain management [6]. Market Challenges - The overall decline in the live e-commerce market and increased consumer scrutiny on product quality are impacting the company's performance [7]. - The departure of key figure Dong Yuhui has led to a significant drop in GMV and order volume on platforms like Douyin [7][8]. User Engagement and Platform Development - The number of paid subscribers on the Oriental Selection app reached 264,300, with a user satisfaction rate of 98.7% [8]. - The app's contribution to GMV increased from 8.4% to 15.7% year-on-year, indicating a shift towards building a proprietary platform [8]. Leadership and Future Outlook - The company is undergoing a transformation phase, focusing on maintaining GMV while developing its app ecosystem and expanding self-operated product categories [10][12]. - CEO Yu Minhong emphasized the importance of connecting upstream supply chains with downstream consumers to provide quality products [9].

Core Viewpoint - Oriental Selection (01797.HK) reported a significant decline in total revenue for the fiscal year 2025, with a total revenue of 4.4 billion yuan, down 32.7% from the previous year's 6.5 billion yuan, indicating challenges in the wake of key personnel changes [2][6] Financial Performance - The net profit for the continuing operations turned from a loss of 96.5 million yuan in the first half of the fiscal year to a profit of 6.2 million yuan [2] - Adjusted net profit increased by 30% year-on-year to 135.4 million yuan, although this still represents a 46% decline compared to the previous fiscal year's net profit of 250 million yuan [2] - The total GMV for fiscal year 2025 was 8.7 billion yuan, a 39.2% decrease from 14.3 billion yuan in the previous fiscal year [6] Business Strategy and Product Development - Self-operated products accounted for 43.8% of total GMV, becoming the main growth driver for the company [3][4] - The company launched 732 self-operated products, up from 488 in the previous fiscal year, expanding its product range to include health foods, pet foods, and clothing [3] - The company is focusing on enhancing its supply chain and product quality as a core competitive strategy [5][4] Market Position and Challenges - The company is facing challenges in maintaining user engagement and traffic, particularly after the departure of key figure Dong Yuhui, which has impacted GMV and order numbers significantly [6][9] - The company is investing in its own app and membership system, with paid membership subscriptions reaching 264,300 and user satisfaction at 98.7% [7] - Despite the challenges, the company aims to strengthen its core business model by connecting upstream suppliers with downstream consumers [8] Stock Performance and Market Sentiment - The stock price has shown volatility, reflecting a reassessment of the company's value in the market [11] - Recent rumors regarding management changes have contributed to fluctuations in stock performance, indicating ongoing uncertainty within the company [10]

Core Insights - Oriental Selection (1797.HK) reported a total revenue of 4.4 billion yuan for the fiscal year 2025, 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] - The gross margin for the continuing operations increased 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] - The company emphasized its commitment to product quality and safety, aiming to become synonymous with quality in the industry [1] Revenue and Profitability - The total GMV (Gross Merchandise Volume) for self-operated products and live e-commerce business reached 8.7 billion yuan in fiscal year 2025, with self-operated products contributing approximately 43.8% of the total GMV [2][3] - The GMV from Douyin accounted for the majority, while the contribution from the Oriental Selection App increased from 8.4% in fiscal year 2024 to 15.7% in fiscal year 2025 [2] Product Development and Service Enhancement - Oriental Selection launched a total of 732 self-operated products in fiscal year 2025, up from 488 in fiscal year 2024, expanding its product range to include health foods, pet foods, and apparel [3] - The company has implemented a cold chain logistics system to enhance delivery services, which has effectively reduced transportation times [3] App and Membership Growth - The Oriental Selection App achieved a paid membership subscription of 264,300, with user satisfaction reaching a historic high of 98.7% [4] - The app has introduced various member benefits and features, including a community forum and book club, enhancing user interaction and experience [4] Future Outlook - The company plans to maintain high standards in product quality and expand its membership benefits, aiming to increase the active user base and registered members of the Oriental Selection App [6][8] - Oriental Selection is committed to building a comprehensive quality control system covering all stages of the product lifecycle, from raw material selection to sales [8]

Core Viewpoint - The recent surge in Oriental Selection's stock price reflects market recognition of its transformation and the effectiveness of its self-operated product strategy, moving focus from "people" to "goods" [4][7] Group 1: Stock Performance - On August 14, Oriental Selection's stock price rose over 12%, reaching a high of 35.56 HKD per share, marking a new peak since late September 2023, and closing at 34.98 HKD per share with a total market capitalization of 36.6 billion HKD [2] - Since July, Oriental Selection has seen a cumulative increase of over 194% in its stock price [2] Group 2: Business Model and Strategy - Experts attribute the stock price increase to improvements in Oriental Selection's business model and the alignment with the new consumption trend in the Hong Kong stock market [4] - The company has shifted its focus to self-operated products, with significant growth in its e-commerce channels, indicating a reduced reliance on live-streaming traffic [5][7] - By June 2025, self-operated products are projected to account for 39% of GMV, with 60% of self-operated sales coming from shelf e-commerce channels [5] Group 3: Product Development and Market Response - In June, Oriental Selection's estimated GMV reached 870 million RMB, a year-on-year increase of 28%, with self-operated product GMV at 350 million RMB, up 15% year-on-year [5] - The company has launched 600 SKUs across various categories, including health foods and clothing, expanding beyond its initial focus on fresh food and snacks [7] - The introduction of popular self-operated products, such as a new brand of sanitary napkins, has contributed to sales growth, with 180,000 units sold within two days of launch [5] Group 4: Membership and Customer Engagement - The number of paid members has significantly increased, and the company is implementing various marketing strategies to enhance member engagement and activity [7] - Initiatives include member discounts, offline meetups, and exclusive product launches on the app [7] Group 5: Market Trends - The growing demand for new consumption patterns is favorable for Oriental Selection, which is well-positioned in the online market despite intense competition [8]