Core Viewpoint - Oriental Selection's financial report for the fiscal year 2025 shows a decline in revenue and net profit, but the negative impact from the departure of top influencers is diminishing, indicating a shift in the company's business model towards a more sustainable approach focused on user trust and supply chain enhancement [3][4]. Financial Performance - For the fiscal year 2025, Oriental Selection's revenue from continuing operations decreased by 32.7% to 4.4 billion yuan from 6.5 billion yuan in 2024, while net profit dropped from 249 million yuan to 6.2 million yuan [3][4]. - Excluding the financial impact from the sale of Hui Tong, the net profit from continuing operations increased by 30% to 135 million yuan from 104 million yuan in the previous year [3]. Business Model Transformation - The company is moving away from reliance on influencer marketing, focusing instead on a model that emphasizes quality product selection and self-operated products [3][6]. - The CEO, Yu Minhong, stated that the challenges faced in fiscal year 2025 have strengthened the core business model, centering around a live-streaming platform for quality products [3]. Market Response - Oriental Selection's stock price has rebounded significantly, closing at 36.3 HKD on August 22, up over 307% from the low of 8.92 HKD following the departure of influencer Dong Yuhui [6]. - The market's positive response reflects recognition of the company's strategic shift from dependence on top influencers to a more diversified content e-commerce model [6]. Product Development and Sales - In fiscal year 2025, the total GMV for self-operated products and live-streaming e-commerce reached 8.7 billion yuan, with the GMV from the Oriental Selection app increasing from 8.4% to 15.7% of total GMV [7][8]. - Self-operated products accounted for approximately 43.8% of total GMV, with the company launching 732 self-operated products, expanding beyond initial categories to include health foods, pet products, and clothing [8]. Strategic Focus - The company aims to create an "online Sam's Club" by focusing on family needs and building a trusted online supermarket [8]. - To enhance service experience, Oriental Selection has launched its first cold chain warehouse to improve logistics efficiency [8]. Membership and User Engagement - Oriental Selection plans to invest in optimizing the app and membership experience, aiming to increase monthly active users and registered members [10]. - The company will enhance its marketing efforts, including offline promotions and community engagement, to drive membership growth [10].

Core Viewpoint - Dongfang Zhenxuan reported a significant decline in revenue and changes in management following the departure of CEO Dong Yuhui, highlighting the impact of leadership changes on financial performance [1][2]. Financial Performance - For the fiscal year 2025, Dongfang Zhenxuan achieved total revenue of 4.392 billion yuan, a year-on-year decrease of 32.7% [1]. - The net profit from continuing operations turned positive at 6.2 million yuan, compared to a net profit of 249 million yuan in fiscal year 2024 [1]. - Administrative expenses increased by 22.5% to 484.8 million yuan, primarily due to the distribution of remaining profits related to Dong Yuhui's departure [1]. Management Changes - CEO Yu Minhong acknowledged the challenges faced by the company and emphasized the importance of cherishing the current situation [2]. - There were rumors regarding the potential departure of former CEO Sun Dongxu, which were clarified by the company, stating he is on leave but not leaving the company [2]. Market Reactions - The stock price of Dongfang Zhenxuan experienced significant volatility, with a drop of approximately 45% on August 19, following rumors about management issues [4]. - The company issued a statement to clarify the rumors and announced that it had reported the matter to the authorities [5][8]. Regulatory Concerns - There are concerns regarding regulatory risks in the live-streaming business, particularly related to proposed guidelines that may limit commission rates, which could affect the company's core profitability model [7][8]. - The company refuted claims that its commission rates exceed 30%, stating that the actual average commission rate is below 20% [8].

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 Viewpoint - The departure of Dong Yuhui has significantly impacted Dongfang Zhenxuan's performance, leading to a substantial decline in revenue and profit, highlighting the challenges the company faces in its transformation efforts and reliance on key personnel [4][6][18]. Financial Performance - In the fiscal year 2025, Dongfang Zhenxuan reported a revenue of 4.4 billion yuan, a year-on-year decline of 32.7%, and a GMV of 8.7 billion yuan, down 39% [4][6]. - The net profit from continuing operations was 6.2 million yuan, a staggering drop of 97.5% year-on-year [7][9]. - Employee count decreased by approximately 25%, with 482 fewer employees compared to the previous year [9][18]. 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 last year, while its competitor, "With Hui," has consistently maintained a top-three position [4][11]. - The user base has also declined, with Dongfang Zhenxuan losing approximately 186,200 followers, while "With Hui" gained over 1 million followers [11][12]. Transformation Challenges - The company is attempting to pivot towards an "online Sam's Club" model, focusing on high-quality self-operated products and a robust membership system, but faces significant hurdles in supply chain management and channel dependency [15][16]. - 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 reducing reliance on third-party platforms [16][17]. Membership Growth - The growth of paid membership has slowed, with only 65,700 new members added in the fiscal year 2025, compared to 74,800 in the second half of the previous fiscal year [17][18].

Core Viewpoint - Oriental Selection reported a total revenue of 4.4 billion yuan for its continuing operations in the fiscal year 2025, marking a turnaround from a net loss of 96.5 million yuan in the first half of the fiscal year 2025 to a net profit of 6.2 million yuan for the entire year, with a 30% year-on-year increase in net profit when excluding the financial impact of the sale of Huizhong [1][2][3] Group 1: Financial Performance - 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 comprehensive gross profit 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][3] Group 2: Product Development and Quality Control - Oriental Selection launched a total of 732 self-operated products in fiscal year 2025, up from 488 in fiscal year 2024, expanding its product categories beyond fresh food and snacks to include nutrition and health products, pet food, and clothing [3][6] - The company emphasized the importance of product quality, stating that it will continue to implement strict quality control measures across all product categories, particularly in essential consumer goods [6][7] Group 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][5] - The company plans to enhance the membership experience by expanding the app's user base, improving member benefits, and introducing more domestic and international quality brands to the platform [7]

Core Insights - The live streaming economy is becoming a key driver for activating consumer potential and facilitating trade flow [1] - The Shanghai government is actively promoting the development of the live streaming economy through various initiatives and support [9][10] Company Overview - Rongmomo Live Streaming Center, operated by Shanghai Rongmomo Digital Technology Co., was established in 2021 and features over 20,000 square meters of live streaming space with 150 dedicated brand studios and 300 skilled hosts [2][4] - Rongmomo has provided one-stop live streaming and operational services for over 120 international mid-to-high-end brands, establishing itself as a new landmark in the live streaming industry in Changning District [4] Technological Innovations - Rongmomo has developed the "Kuixing Live Streaming Operation Management System," which utilizes big data and AI algorithms to enhance host performance and audience engagement [5] - The "Tianquan Live Streaming Monitoring System" allows for real-time detection and optimization of live streaming content, significantly reducing compliance risks [7] Market Trends - The Shanghai live streaming retail market is projected to reach approximately 493.7 billion yuan in 2024, representing a year-on-year growth of 12.9%, making it the top city in the country for live streaming retail [9] - The Changning District has launched a three-year action plan to promote high-quality development in the live streaming economy, focusing on nurturing key players and optimizing the industry ecosystem [9][11] Future Directions - Rongmomo aims to continue leveraging high-quality content and technological services to empower brand live streaming, enhancing commercial decision-making and trade efficiency [10] - The Changning District plans to further develop its live streaming economy, fostering a professional talent pool and creating a vibrant e-commerce ecosystem that connects the Yangtze River Delta and international markets [11]

Core Viewpoint - Oriental Selection reported a total revenue of 4.392 billion yuan for the fiscal year 2025, a year-on-year decline of 32.7% [1] Financial Performance - The net profit from continuing operations turned positive at 6.2 million yuan, compared to a loss in the first half of fiscal year 2025, while the net profit for fiscal year 2024 was 249 million yuan [1] - Adjusted net profit, excluding one-time expenses and profits from the sale of Hui Tong Hang, increased by 30% year-on-year to 135.4 million yuan [2] - Gross Merchandise Volume (GMV) decreased by 39.2% from 14.3 billion yuan to 8.7 billion yuan [3] - Total revenue cost decreased by 38.2% to 3 billion yuan, while gross profit fell by 17% to 1.4 billion yuan [3] - Administrative expenses rose by 22.5% to 484.8 million yuan, primarily due to the distribution of remaining profits from Hui Tong Hang [3] Business Strategy and Growth - The company emphasized the importance of self-operated products, which have become a key growth driver, increasing from 488 to 732 products [4] - Self-operated products accounted for approximately 43.8% of total GMV in fiscal year 2025 [6] - The workforce for self-operated products and live e-commerce reached 1,401, with 1,070 full-time employees [6] Market Position and Stock Performance - Oriental Selection's stock price has seen significant growth, rising from around 11 HKD per share in early July to a peak of 53.7 HKD, marking an increase of over 200% [11] - The market capitalization is approximately 38 billion HKD as of August 22 [11] Partnerships and Agreements - The company renewed its trading framework agreement with New Oriental, with receivables from the partnership increasing from 15.05 million yuan in fiscal year 2023 to 61.73 million yuan in fiscal year 2025 [7] - The company will also procure goods for gift packages to support live commerce operations, with a fiscal year 2026 cap of 8.2 million yuan [8]

Core Viewpoint - Oriental Selection's financial report for the fiscal year 2025 shows a decline in revenue and net profit, but the negative impact from the departure of top streamers is diminishing, with a return to profitability in its ongoing business [2][3]. Financial Performance - For the fiscal year 2025, revenue from ongoing operations decreased by 32.7% to 4.4 billion yuan from 6.5 billion yuan in 2024, while net profit fell from 249 million yuan to 6.2 million yuan [3]. - Excluding the financial impact from the sale of Hui Tong, net profit for ongoing operations increased by 30% to 135 million yuan from 104 million yuan in 2024 [3]. - Administrative expenses rose by 22.5% to 485 million yuan, primarily due to the distribution of remaining undistributed profits related to Hui Tong [3]. Strategic Shift - Oriental Selection is moving away from reliance on internet celebrity effects, focusing on a business model centered around quality product selection and self-operated products [2][4]. - The company aims to create an online supermarket based on user trust, likening its strategy to that of "online Sam's Club" [7][8]. Market Response - The company's stock price has rebounded significantly, rising over 307% from a low of 8.92 HKD at the time of Dong Yuhui's departure to 36.3 HKD [4]. - The market's positive response reflects recognition of Oriental Selection's transition from dependence on live-streaming sales to a more comprehensive content e-commerce model [4][5]. Product Development - In fiscal year 2025, the total GMV for self-operated products and live-streaming e-commerce reached 8.7 billion yuan, with the proportion from the Oriental Selection App increasing from 8.4% to 15.7% [5][6]. - Self-operated products accounted for approximately 43.8% of the total GMV, with 732 self-operated products launched, up from 488 in 2024 [6][7]. Future Plans - The company plans to enhance its self-operated product offerings and improve service experiences, including the launch of a cold chain warehouse to shorten logistics times [7][8]. - CEO Yu Minhong expressed intentions to increase the proportion of self-operated products in total GMV and emphasized the need for continuous growth in active users and membership [9].

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 Insights - In the fiscal year 2025, Oriental Selection reported total revenue of 4.4 billion yuan from its ongoing business, which includes self-operated products and live e-commerce [1] - The net profit for the ongoing business was 6.2 million yuan, but adjusted for the sale of "With Glory," the net profit increased to 13.5 million yuan, representing a 30% year-on-year growth [1] - The gross margin for ongoing business improved from 25.9% in fiscal year 2024 to 32% in fiscal year 2025, primarily due to the growth in self-operated products and live e-commerce [1] Revenue Breakdown - The total GMV (Gross Merchandise Volume) for self-operated products and live e-commerce in fiscal year 2025 reached 8.7 billion yuan [1] - A significant portion of the GMV came from Douyin, while the contribution from the Oriental Selection App increased from 8.4% in fiscal year 2024 to 15.7% in fiscal year 2025 [1] - Self-operated products accounted for approximately 43.8% of the total GMV in fiscal year 2025 [1] Product Development - The company launched a total of 732 self-operated products in fiscal year 2025, up from 488 in fiscal year 2024 [1] - The product categories have diversified beyond fresh food and snacks to include nutritional and health products, pet food, and clothing [1] - Self-operated products have become the main growth driver for Oriental Selection [1] Customer Engagement - The number of paid subscribers for the Oriental Selection App reached 264,300 in fiscal year 2025 [1] - User satisfaction for the Oriental Selection App achieved a historical high of 98.7% [1] Strategic Positioning - The CEO of Oriental Selection, Yu Minhong, stated that the challenges faced in fiscal year 2025 further solidified and strengthened the company's core business model [2] - The company focuses on a live platform centered around selecting quality products, with self-operated products as a long-term positioning strategy [2]