Core Viewpoint - The stock price of Dongfang Zhenxuan has experienced a significant drop due to rumors of related party transactions and high commission rates, despite a previous surge in stock value since July 2023 [2][3]. Group 1: Stock Performance and Market Reactions - Dongfang Zhenxuan's stock price rose by 212.54% over 23 trading days, reaching a new high since March 2023 [2]. - Following rumors of CEO Zhou Chenggang's involvement in related party transactions and claims of commission rates exceeding 30%, the stock price fell sharply, with a post-market drop of 20.89% [2]. - The departure of popular host Dong Yuhui led to a market reaction, with the stock price plummeting over 23% the day after his exit, resulting in a market value loss of nearly 30 billion HKD [3]. Group 2: Business Strategy and Financial Performance - Dongfang Zhenxuan has been transitioning to a self-operated model, reducing reliance on top hosts, as indicated by CEO Yu Minhong's statements [4]. - The company has developed and launched 600 SKUs of self-operated products, with self-operated products accounting for approximately 37% of total GMV as of November 30, 2024 [4]. - In June 2025, the GMV reached approximately 8.8 billion, a year-on-year increase of 28%, with self-operated products contributing 3.5 billion, up 15% [5]. Group 3: Membership and Customer Engagement - As of November 2024, the number of paid subscribers on the Dongfang Zhenxuan app reached 228,300, driven by the success of self-operated and membership services [6]. - The introduction of a paid membership service, priced at 199 CNY per year, aims to enhance customer loyalty and sales [5]. Group 4: Challenges and Future Outlook - Dongfang Zhenxuan faces challenges in diversifying its product offerings and reducing dependence on a single sales channel, particularly the Douyin platform, which accounts for 60% to 70% of sales [6][7]. - The company is actively seeking a more comprehensive and stable growth model while navigating the competitive retail market [7].

Core Viewpoint - The stock price of Dongfang Zhenxuan experienced significant volatility, initially rising by 23.56% before closing down over 20% at 34.32 HKD per share, with a market capitalization of approximately 35.9 billion HKD [1] Group 1: Stock Performance - Since July, Dongfang Zhenxuan's stock price has been on the rise, particularly after the departure of Dong Yuhui [1] - The stock price fluctuations may be influenced by rumors regarding the CEO of New Oriental Group, Zhou Chenggang, being investigated for alleged misconduct, which the company has denied [5] Group 2: Business Strategy - Following the departures of key figures, Dongfang Zhenxuan has shifted back to a product-centric strategy, moving away from reliance on influencer marketing [3] - The company has launched over 400 self-operated products since April 2022, achieving cumulative sales of over 210 million units and a customer base of 30.86 million [3] - By 2024, self-operated products accounted for 46% of total sales, indicating a transition to a more stable revenue model [3] Group 3: Market Positioning - Dongfang Zhenxuan aims to position itself as an "online Sam's Club," focusing on high-quality, cost-effective products to drive customer loyalty and repeat purchases [4] - The company has introduced a paid membership service priced at 199 RMB per year, with 228,300 subscribers as of November 2024 [5] Group 4: Future Goals - The company plans to evolve into a product technology company centered around self-operated products and a membership-based one-stop shopping platform [3]