Core Viewpoint - The company, formerly known as New Oriental Online, has faced significant challenges in its transition to a live e-commerce model, with recent financial results showing a sharp decline in revenue, profit, and GMV, but there are signs of recovery in the latter half of the fiscal year [2][3][4]. Financial Performance - In the latest fiscal year, the company's revenue dropped by 32.7% year-on-year to 4.4 billion yuan (approximately 620 million USD), with net profit plummeting to only 5.7 million yuan [4]. - The GMV from core e-commerce and self-operated products fell by 40% from 14.3 billion yuan to 8.7 billion yuan [4]. - Despite the overall decline, the second half of the fiscal year saw a slight revenue increase compared to the first half, and the company achieved a net profit of 102.4 million yuan, reversing earlier losses [7]. Strategic Shift - The company is attempting to reduce its reliance on top influencers by focusing on self-operated products and a membership system, aiming to create a model similar to Sam's Club [7][9]. - The self-operated products generated 3.5 billion yuan in GMV, accounting for nearly 80% of total revenue, indicating the effectiveness of the new strategy [8][9]. Market Reaction - Following the release of the disappointing financial report, the company's stock price fell by 13% on the first trading day, although it still recorded a 76% increase year-to-date [6]. - Analysts have mixed views on the company's future, with some maintaining a "buy" rating while others have adjusted profit expectations downward [9]. Membership Growth - The company views its membership business as a core future driver, with the number of paid subscribers increasing by 33% to 264,300 [9]. - The GMV from self-operated products through the app increased from 16.3% to 28.8%, reflecting a growing trend in direct sales [9].