Core Insights - Shanghai's live streaming economy is leading the nation with a projected retail sales of approximately 493.7 billion yuan in 2024, reflecting a year-on-year growth of 12.9% [1] - The city's unique "quality" and "brand" advantages are key factors in its top ranking among Chinese cities in live streaming retail [1] Group 1: Industry Development - The "容么么直播中心" in Changning District features 150 professional live streaming rooms, emphasizing a commitment to high-quality content creation [4] - The center operates with a large team of 20 to 40 people supporting each live stream, focusing on empowering brand growth rather than individual influencer branding [4] Group 2: Technological Innovation - The "容么么数智化直播管理平台" monitors live streams in real-time, ensuring compliance and quality through AI technology [6] - The "天权" monitoring system collaborates with local regulatory bodies to enhance non-intrusive oversight of live streaming activities [6] - A comprehensive digital management system, including "魁星系统," "瑶光系统," and "天枢系统," optimizes the training and management of live streamers [6] Group 3: Government and Enterprise Collaboration - Shanghai has established itself as a pioneer in promoting high-quality live streaming through dedicated action plans and regulatory frameworks [8] - The city has created 20 unique live streaming e-commerce bases, with "容么么" being a prominent example of successful industry growth [8] - Changning District's action plan focuses on integrating live streaming with various sectors, while also supporting industry standards and talent development [10]

Core Viewpoint - The departure of Dong Yuhui has significantly impacted Dongfang Zhenxuan's financial performance, leading to a notable decline in revenue and profit, but the company is making adjustments to its business model and focusing on self-operated products and live-streaming e-commerce for long-term growth [2][3][4]. Financial Performance - For the fiscal year 2025, Dongfang Zhenxuan reported total revenue of 4.4 billion yuan, a decrease of 32.7% from 6.5 billion yuan in fiscal year 2024 [2][4]. - The net profit for fiscal year 2025 was 6.2 million yuan, a significant drop from 250 million yuan in the previous year [2][4]. - In the first half of fiscal year 2025, the company experienced a net loss of 96.5 million yuan, but by the end of the fiscal year, it turned a profit of 6.2 million yuan [3][4]. Business Strategy - Dongfang Zhenxuan is shifting its focus from reliance on individual influencers to building supply chain capabilities, which is seen as essential for long-term development [3][4][7]. - The company aims to enhance its self-operated product offerings, with a total GMV of 8.7 billion yuan for fiscal year 2025, where self-operated products accounted for approximately 43.8% of total GMV [3][5]. Product Development - The company has launched 732 self-operated products in fiscal year 2025, up from 488 in the previous year, indicating a strong commitment to product development [5][6]. - Notable product successes include a cotton sanitary napkin that sold 180,000 units in two days and a frozen shrimp product that generated over 21 million yuan in sales [6]. Market Challenges - Despite progress in self-operated products, Dongfang Zhenxuan faces challenges in replicating the success of past star influencers, as the current mid-tier influencers lack the same level of audience engagement [7][8]. - The company is also working to develop its app and increase user engagement, with app-generated GMV at 1.37 billion yuan, accounting for 15.7% of total GMV [8][9]. Future Outlook - The company plans to enhance its marketing efforts, particularly offline, to increase brand awareness and customer acquisition, as many potential customers are still unaware of its product offerings [9]. - Dongfang Zhenxuan's transition to a model akin to "online Sam's Club" is still in development, and its success will depend on building a strong product and brand foundation [8][9].

Core Viewpoint - The departure of Dong Yuhui has significantly impacted Dongfang Zhenxuan's financial performance, leading to a notable decline in revenue and profit, but the company is making adjustments to its business model and focusing on self-operated products and live-streaming e-commerce as a long-term strategy [1][3][9]. Financial Performance - For the fiscal year 2025, Dongfang Zhenxuan reported total revenue of 4.4 billion yuan, a decrease of 32.7% from 6.5 billion yuan in fiscal year 2024 [1][3]. - The net profit for fiscal year 2025 was 6.2 million yuan, a significant drop from 250 million yuan in the previous year [1][3]. - In the first half of fiscal year 2025, the company experienced a net loss of 96.5 million yuan, but by the end of the fiscal year, it achieved profitability [1][3]. Business Strategy - Dongfang Zhenxuan is shifting from reliance on individual influencers to building supply chain capabilities, which is seen as essential for long-term growth [2][9]. - The company has focused on self-operated products, achieving a GMV of 3.81 billion yuan for self-operated products in fiscal year 2025, accounting for approximately 43.8% of total GMV [5][6]. - The number of self-operated products launched increased to 732 in fiscal year 2025, up from 488 in the previous year [5][6]. Market Challenges - The company faces challenges in replicating the success of past star influencers, as the current mid-tier influencers do not have the same level of audience engagement [7][9]. - Dongfang Zhenxuan's membership revenue is still low compared to competitors like Sam's Club, which relies heavily on membership fees for profitability [7][9]. - The company continues to depend on public traffic from platforms like Douyin, with only 1.37 billion yuan in GMV generated from its app, representing 15.7% of total GMV [8]. Future Outlook - The company plans to enhance its app's user engagement and membership numbers, recognizing the importance of building a loyal customer base [8]. - Dongfang Zhenxuan aims to strengthen its brand and product offerings to create a sustainable competitive advantage in the evolving live-streaming e-commerce landscape [9][10].

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 [2][5][10]. 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 [2][5]. - The net profit for the continuing operations was 6.2 million yuan, a staggering drop of 97.5% year-on-year [6][8]. - The number of employees decreased by approximately 25%, with a reduction of 482 employees compared to the previous year [8]. Market Position and Competition - Dongfang Zhenxuan's main account has frequently fallen out of the top ten in the Douyin sales rankings, with the lowest ranking being 22nd in October of the previous year [3][11]. - In contrast, the account "With Hui" has consistently maintained a top-three position, remaining at the top since November of the previous year [3][11]. Challenges in Transformation - Dongfang Zhenxuan's transition to an "online Sam's Club" model faces multiple challenges, including supply chain management, channel dependency, and slowing membership growth [3][19]. - The GMV from the company's own app accounted for 15.7% of total GMV, with revenue from the app increasing from 900 million yuan to 1.1 billion yuan [19][20]. Membership Growth - The growth of paid membership has slowed, with only 65,700 new members added in the 2025 fiscal year, compared to 74,800 in the second half of the 2024 fiscal year [20][21]. - The total number of paid members reached 264,300 by the end of the 2025 fiscal year, indicating a deceleration in membership growth [20]. Impact of Key Personnel Changes - The departure of key figures, including Dong Yuhui, has led to a decline in user engagement and brand loyalty, as evidenced by a drop in followers for Dongfang Zhenxuan's main account [10][12]. - The company has acknowledged management issues and is working on restructuring to stabilize its operations [5][14].

Core Insights - Oriental Selection (1797.HK) reported a significant decline in net revenue and gross merchandise volume (GMV) for the fiscal year 2025, reflecting challenges faced during its business transformation [1][2] Financial Performance - The net revenue from continuing operations decreased by 32.7% year-on-year to 4.4 billion RMB, down from 6.5 billion RMB [1] - The net profit turned positive at 0.062 billion RMB, compared to a loss in the first half of the fiscal year, but down from 2.491 billion RMB in the previous fiscal year [1] - Adjusted net profit, excluding one-time expenses and profits from the sale of a subsidiary, increased by 30% year-on-year to 1.354 billion RMB [1] - GMV fell by 39.2% year-on-year to 8.7 billion RMB, down from 14.3 billion RMB [1] - Total revenue cost decreased by 38.2% year-on-year to 3 billion RMB, while gross profit decreased by 17% to 1.4 billion RMB [1] - Gross margin improved from 25.9% to 32% due to healthy development in self-operated products and live e-commerce [1] Administrative Expenses - Administrative expenses for continuing operations increased by 22.5% year-on-year to 484.8 million RMB, primarily due to the distribution of remaining profits from a subsidiary [2] - The payment of 140 million RMB to former CEO Dong Yuhui was included in the administrative expenses for the fiscal year [2] Business Strategy and Developments - The company emphasized the importance of self-operated products as a long-term strategy, with the number of self-operated products increasing from 488 to 732 [2] - A new cold chain warehouse, "Oriental Selection Central China No. 1 Warehouse," has been put into operation to enhance the delivery service system [2] - The company announced a framework agreement with New Oriental to sell its own brand products, with historical transaction amounts set for the fiscal years 2023 to 2025 [3] - The maximum transaction amount for the fiscal year 2026 is set at 100 million RMB, with internal controls established to ensure compliance [3]

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]

Core Insights - Shanghai's live retail sales are projected to reach approximately 493.7 billion yuan in 2024, marking a year-on-year growth of 12.9%, ranking first among cities nationwide [1] - The Shanghai government is actively promoting the development of the live economy through initiatives such as the "Three-Year Action Plan for High-Quality Development of the Live Economy (2024-2026)" [2][4] Group 1: Industry Development - The live economy in Shanghai is supported by a robust infrastructure, including the Rongmomo Live Center, which features over 150 standard live streaming rooms serving more than 120 international mid-to-high-end brands [1][3] - The Rongmomo Digital Technology Company has developed a comprehensive service system that includes live e-commerce, content creation, short video production, and integrated marketing planning [1][3] Group 2: Technological Innovation - Rongmomo has created a proprietary live operation management system that utilizes big data and AI algorithms to enhance the precision of host training and audience analysis [3] - The monthly sales conversion rate in Rongmomo's live streaming rooms is currently between 10% and 15%, indicating effective audience engagement and sales strategies [3] Group 3: Government Initiatives - The Shanghai government aims to maintain its international leadership in the live economy, targeting a retail sales goal of 600 billion yuan by 2026 and the establishment of ten leading live streaming platforms with international competitiveness [4] - The Longjing District has launched a three-year action plan focusing on platform economy, fashion consumption, and live talent to enhance the live economy ecosystem [3][4]

Core Insights - In 2024, Shanghai aims to establish four distinct live commerce clusters and create a total of 20 influential live e-commerce bases, leading the nation in live retail sales with an estimated revenue of approximately 493.7 billion yuan, reflecting a year-on-year growth of 12.9% [1][5] Group 1: Industry Development - The Shanghai government has launched a three-year action plan (2024-2026) to promote high-quality development in the live commerce sector, focusing on accelerating the cultivation of key players and supporting the innovation and expansion of live platforms [5][6] - The Changning District has introduced its own three-year action plan emphasizing platform economy, fashion consumption, and live talent, with the goal of maintaining Shanghai's international leadership in live commerce by 2026 [6] Group 2: Company Initiatives - Rongmomo Live Center, located in Changning District, operates 150 standard live streaming rooms for over 120 international mid-to-high-end brands, providing comprehensive live operation services [3] - Rongmomo Digital Technology Co., Ltd. has developed a full-service ecosystem covering live e-commerce, content creation, short video production, and integrated marketing, focusing on enhancing brand sales performance [3][5] - The company has trained over 300 full-time hosts through a scientific system, achieving significant sales results, such as helping a luxury bag brand reach the top of the luxury sales list during the Double Eleven shopping festival with over 100% year-on-year growth in GMV [3] Group 3: Technological Integration - Rongmomo has developed a live operation management system that utilizes big data and AI algorithms to generate key metrics for host performance and audience analysis, achieving a monthly sales conversion rate of 10% to 15% in their live rooms [5]

Core Viewpoint - Oriental Selection reported a significant decline in revenue and net profit for the fiscal year ending May 31, 2025, primarily due to intensified competition in the live e-commerce sector and strategic business adjustments [2][5]. Financial Performance - Total revenue for the fiscal year 2025 was 4.392 billion RMB, a decrease of 32.7% from 6.526 billion RMB in the previous fiscal year [2][4]. - Net profit from continuing operations was 6.191 million RMB, down 97.5% from 249.1 million RMB year-on-year [2][4]. - Excluding the impact of the sale of Huixing Technology, net profit from continuing operations increased by 30% to 135.4 million RMB [5]. Business Segments - Revenue from the app increased from 900 million RMB in fiscal year 2024 to 1.1 billion RMB in fiscal year 2025 [2]. - Total revenue from continuing operations, excluding Huixing Technology, decreased by 30.9% to 4.2 billion RMB [2]. Strategic Adjustments - The company has shifted focus towards self-operated products, with total revenue from self-operated products reaching approximately 3.5 billion RMB, accounting for about 43.8% of total GMV [7]. - The product range has diversified beyond fresh food and snacks to include daily consumer goods and home products [7]. Operational Metrics - The total GMV for fiscal year 2025 was 8.7 billion RMB, with a notable increase in GMV from the app, rising from 8.4% in fiscal year 2024 to 15.7% [7]. - The number of paid subscribers for the Oriental Selection app reached 264,300, indicating a growing membership base [7]. Cost and Profitability - Total cost of revenue for continuing operations decreased by 38.2% to 3 billion RMB, primarily due to reduced inventory and logistics costs [8]. - Gross profit fell from 1.7 billion RMB in fiscal year 2024 to 1.4 billion RMB, but gross margin improved from 25.9% to 32.0% [8]. Team and Structure - As of May 31, the total number of employees in the self-operated products and live e-commerce teams was 1,401, with 1,070 full-time and 331 part-time staff [8]. Management Stability - Prior to the earnings release, there were rumors regarding the departure of former CEO Sun Dongxu, which the company denied, stating he is currently on leave and has not left the company [9].

Core Viewpoint - The income disparity between Dong Yuhui and his former employer, Dongfang Zhenxuan, has sparked public debate, highlighting the contrasting business models and performance of both entities after their separation [1][2][6]. Group 1: Income and Performance - Dong Yuhui reportedly generated an income of 2 to 3 billion yuan after establishing his own company, Yuhui Hangxing, although this figure has been denied [1][2]. - Dongfang Zhenxuan's stock price increased by 357% since Dong Yuhui's departure, indicating a successful transition to a new business model focused on self-operated brands and supply chains [6]. - In the first half of the 2025 fiscal year, Dongfang Zhenxuan reported total revenue of 2.187 billion yuan, a year-on-year decline of 9.32% [6]. Group 2: Business Models - Dongfang Zhenxuan is pursuing a "de-head anchor" strategy, focusing on developing new hosts and diversifying its platform presence, while Yuhui Hangxing centers around Dong Yuhui's personal brand [6][7]. - Yuhui Hangxing has reduced traditional live-streaming frequency and is exploring cultural tourism projects and celebrity interviews as new growth engines [7][10]. - The average commission rate for live-streaming sales is estimated to be between 10% and 30%, with Yuhui Hangxing potentially operating at the lower end due to its "knowledge-driven" branding [3][4]. Group 3: Future Challenges - The transition from a "super individual" to a systematic operation poses a significant challenge for Yuhui Hangxing, as the sustainability of personal IP relies on the depth of knowledge and content quality [9][10]. - The company is actively working on incubating new hosts and establishing a matrix of accounts to mitigate market risks associated with reliance on a single personality [9][10]. - The future success of personal IP-driven models may depend on balancing content quality with commercialization, as well as integrating supply chain capabilities for long-term growth [10].