Core Viewpoint - Oriental Selection's stock fell over 11% with a trading volume exceeding 2.6 billion HKD, reflecting ongoing concerns about its financial performance and market position [2]. Financial Performance - For the fiscal year 2025 (June 2024 - May 2025), Oriental Selection reported a revenue of 4.4 billion HKD, a year-on-year decline of 32.7% [4]. - The net profit from continuing operations was 6.191 million HKD, down 97.5% year-on-year [4]. - Goldman Sachs adjusted its GMV forecast for the fiscal years 2026 to 2027 down by 1% to 3%, while increasing revenue forecasts by up to 10% due to improved contributions from self-operated brand products [2]. Market Position and Trends - The company has experienced a significant drop in its follower count, losing over 1.86 million followers since July 2024 [5]. - The main account of Oriental Selection has only entered the Douyin (TikTok) sales leaderboard top ten four times this year, failing to maintain its previous strong performance [5]. - The decline in viewership and engagement is attributed to the inability to replace the traffic effect brought by top streamers [5].

Core Viewpoint - Goldman Sachs has downgraded the GMV forecast for Dongfang Zhenxuan (01797) for the fiscal years 2026 to 2027 by 1% to 3%, while increasing revenue forecasts by up to 10% due to the rising contribution of self-operated brand products [1] Group 1 - The adjusted net profit margin forecast for fiscal years 2026 to 2027 has been raised by 0.2 and 1 percentage points [1] - The target price for Dongfang Zhenxuan has been increased from 8 HKD to 9 HKD [1] - Despite the adjustments, Goldman Sachs maintains a "Sell" rating on Dongfang Zhenxuan due to weak fundamentals and high valuations [1] Group 2 - For the half-year ending May this year, Dongfang Zhenxuan reported mixed performance, with GMV declining by 55% year-on-year to 3.9 billion RMB, which is 15% lower than Goldman Sachs' expectations [1] - The company managed to exceed earnings expectations by controlling operating expenses, resulting in a net profit growth of 30% to 135 million RMB for the fiscal year 2025, excluding the one-time impact from the sale of "Yuhui Tong" [1]

Core Insights - Goldman Sachs reported that Dongfang Zhenxuan's performance for the second half of the fiscal year ending May 2023 was mixed, with Gross Merchandise Volume (GMV) declining by 55% year-on-year to 3.9 billion, which was 15% lower than the bank's expectations [1] - Despite the decline in GMV, the company managed to control operating expenses, resulting in earnings per share exceeding expectations during the period [1] - Excluding a one-time impact from the sale to Huizhong, the net profit from continuing operations for fiscal year 2025 is projected to grow by 30% to 135 million [1] Financial Projections - Goldman Sachs has lowered its GMV forecast for Dongfang Zhenxuan for fiscal years 2026 to 2027 by 1% to 3%, while increasing revenue forecasts by up to 10% due to the improved contribution from self-operated brand products [1] - Adjusted net profit margin forecasts for fiscal years 2026 to 2027 have been raised by 0.2 and 1 percentage points, respectively [1] Rating and Target Price - Despite the adjustments, Goldman Sachs maintains a "Sell" rating on Dongfang Zhenxuan due to ongoing weak fundamentals and high valuations [1] - The target price has been raised from 8 HKD to 9 HKD [1]

Core Viewpoint - Oriental Selection (01797) has experienced a significant decline in stock price, dropping over 9% and currently trading at 29 HKD, with a transaction volume of 1.555 billion HKD [1] Financial Performance - For the fiscal year ending May 31, 2025, Oriental Selection reported total revenue of approximately 4.392 billion RMB, a year-on-year decrease of 37.9% [1] - The profit attributable to the company's owners was 5.735 million RMB, reflecting a dramatic year-on-year decline of 99.67%, with earnings per share at 0.01 RMB [1] - Excluding the financial impact from the sale of "Yuhui Tongxing," the net profit from continuing operations is projected to increase by 30% from 104 million RMB in fiscal year 2024 to 135.4 million RMB in fiscal year 2025 [1] Market Analysis - Goldman Sachs reported mixed results for Oriental Selection's performance for the second half of the fiscal year ending May, with the gross merchandise volume (GMV) declining by 55% to 3.9 billion RMB, which is 15% lower than their expectations [1] - Despite the weak fundamentals and high valuation, Goldman Sachs maintains a "Sell" rating on Oriental Selection, noting that the company managed to exceed earnings per share expectations through operational cost control [1]

Core Viewpoint - Dongfang Zhenxuan (01797) has experienced a significant decline in stock price, dropping over 9% and currently trading at 29 HKD, with a transaction volume of 1.555 billion HKD [1] Financial Performance - For the fiscal year ending May 31, 2025, Dongfang Zhenxuan reported total revenue of approximately 4.392 billion RMB, a year-on-year decrease of 37.9% [1] - The profit attributable to the company's owners was 5.735 million RMB, reflecting a substantial year-on-year decline of 99.67% [1] - Earnings per share stood at 0.01 RMB [1] Operational Insights - Excluding the financial impact from the sale of Yuhui Tongxing, the net profit from continuing operations is projected to increase by 30% from 10.4 million RMB in fiscal year 2024 to 13.54 million RMB in fiscal year 2025 [1] - Goldman Sachs reported mixed results for Dongfang Zhenxuan's performance for the second half of the fiscal year ending May, with the Gross Merchandise Volume (GMV) declining by 55% to 3.9 billion RMB, which is 15% lower than the bank's expectations [1] - Despite the decline in GMV, the company managed to exceed earnings per share expectations through operational cost control [1] Analyst Rating - Goldman Sachs maintains a "Sell" rating on Dongfang Zhenxuan due to ongoing weak fundamentals and high valuation concerns [1]

Core Viewpoint - Oriental Selection is struggling to recover from the impact of the departure of its key figure, Dong Yuhui, with significant declines in revenue and profit reported in the latest financial results [2][3]. Financial Performance - For the fiscal year 2025, Oriental Selection reported a 32.7% decrease in total revenue from continuing operations, amounting to 4.392 billion yuan [3][6]. - The net profit for the year was 6.2 million yuan, a staggering decline of 97.5% compared to the previous year [3][6]. - Despite the overall decline, the company managed to turn a loss of 96.5 million yuan in the first half of the fiscal year into a profit, with a net profit of 135.4 million yuan when excluding the financial impact of the sale of "With Hui Together" [3][6]. - The gross profit margin for continuing operations improved from 25.9% in fiscal year 2024 to 32% in fiscal year 2025 [3][6]. Business Challenges - The transition to an "online Sam's Club" model is facing multiple challenges, including supply chain issues, channel dependency, and slowing membership growth [2][3]. - The total GMV from all sales channels decreased from 14.3 billion yuan to 8.7 billion yuan year-on-year, with a significant drop in paid orders from Douyin [3][6]. - The number of paid members increased from 198,600 to 264,300, representing a net increase of only 65,700 members, indicating weak growth in the membership system [6]. User Engagement and Market Position - The follower count for the "With Hui Together" Douyin account has surpassed that of Oriental Selection's main account, indicating a shift in user engagement [4]. - Oriental Selection's main account has struggled to maintain a strong presence in Douyin's monthly sales rankings, with only four entries in the top ten over the past year [4]. - The departure of key hosts has raised concerns about the company's ability to retain core talent, despite previous efforts to reduce reliance on individual hosts [4][5]. Strategic Initiatives - To mitigate reliance on single hosts, the company has initiated a clear transformation strategy to develop an "online version of Sam's Club" [5]. - The company launched its self-operated app in August 2022, promoting self-operated products and introducing a paid membership system [5]. - The GMV from self-operated products reached 3.81 billion yuan in fiscal year 2025, accounting for approximately 43.8% of total GMV, with a notable increase in the number of self-operated products launched [6].

Core Viewpoint - Oriental Selection is facing significant challenges in its business operations following the departure of key figure Dong Yuhui, with a notable decline in revenue and profit margins reported in the latest financial results [1][3]. Financial Performance - For the fiscal year 2025, Oriental Selection reported a total revenue of 4.392 billion yuan, a decrease of 32.7% compared to the previous fiscal year [4]. - The net profit for the same period was 6.2 million yuan, down 97.5% from 250 million yuan in the previous year [4]. - Excluding the financial impact of the separation from "With Hui Together," the net profit was 135.4 million yuan, reflecting a 30% increase year-on-year [4]. Business Challenges - The transition to an "online Sam's Club" model is hindered by supply chain issues, channel dependency, and slowing membership growth [2]. - The gross merchandise volume (GMV) from all sales channels dropped from 14.3 billion yuan to 8.7 billion yuan, with a significant decline in orders from Douyin [4]. User Engagement and Talent Retention - The follower count for the "With Hui Together" Douyin account has surpassed that of Oriental Selection's main account, indicating a shift in user engagement [5]. - The company has experienced turnover among key hosts, raising concerns about retaining core talent [5]. Membership Growth - The number of paid members increased from 198,600 to 264,300, with a net addition of only 65,700 members over the year [7]. - The company plans to enhance its membership system through increased marketing efforts and direct engagement from leadership [7]. Self-Operated Products - The GMV for self-operated products reached 3.81 billion yuan, accounting for approximately 43.8% of total GMV [6]. - The proportion of self-operated products in total GMV increased from 16.3% to 28.8% [6].

Core Insights - Oriental Selection (01797) reported an annual performance for the year ending May 31, 2025, with total revenue of approximately 4.392 billion yuan, a decrease of 37.9% year-on-year [1] - The profit attributable to the company's owners was 5.735 million yuan, reflecting a significant decline of 99.67% compared to the previous year [1] - Earnings per share stood at 0.01 yuan [1] Financial Performance - The net profit from continuing operations increased by 30.0% from 104 million yuan in the 2024 fiscal year to 135.4 million yuan in the 2025 fiscal year, excluding the financial impact of the sale of Hui Tong Hang [1] - The financial impact of the sale of Hui Tong Hang included one-time expenses and profits, which affected the overall profit figures [1]

Core Viewpoint - The event "Huang Gu Niang" e-commerce live streaming competition aims to promote local female e-commerce talent and support the national strategy of rural revitalization and digital economy [1] Group 1: Event Overview - The competition and resource docking meeting took place on August 20, 2025, in Hefei High-tech Zone [1] - The event is guided by the Anhui Provincial Women's Federation and co-hosted by several local government departments [1] Group 2: Objectives and Goals - The initiative seeks to cultivate local female e-commerce talent and establish the "Huang Gu Niang" live streaming brand [1] - It aims to help Hefei's unique products reach a national audience [1] Group 3: Support for Women - The Hefei Women's Federation emphasizes the importance of e-commerce live streaming as a platform for female entrepreneurship [1] - The organization plans to continue building platforms and optimizing services to support women's development in the e-commerce sector [1]

Core Viewpoint - The stock of Oriental Selection surged over 14% at one point and is currently up over 11% following the company's statement addressing rumors about its commission rates and management [1] Group 1: Company Response - Oriental Selection issued a statement clarifying that rumors regarding Zhou Chenggang are purely false [1] - The company refuted claims that its commission rate has been consistently over 30%, stating that the actual average commission rate is below 20% [1] - In response to the misinformation, the company has initiated legal action and will pursue the matter thoroughly [1]