Core Viewpoint - Oriental Selection's financial performance for the fiscal year 2025 shows a significant decline in revenue and GMV, indicating challenges following the departure of key personnel and a shift in business strategy towards self-operated products [1][3][10]. Financial Performance - Total revenue from continuing operations for fiscal year 2025 was 4.4 billion yuan, a decrease of 32.7% compared to 6.5 billion yuan in the previous fiscal year [1]. - Adjusted net profit increased by 30% year-on-year to 135.4 million yuan, but this still represents a 46% decline compared to the previous year's net profit of 250 million yuan [3]. - Total GMV for fiscal year 2025 was 8.7 billion yuan, down 39.2% from 14.3 billion yuan in the previous fiscal year [3][7]. Business Strategy - The self-operated product strategy has deepened, with self-operated products accounting for 43.8% of total GMV, becoming the core business engine [4][5]. - The company launched 732 self-operated products, expanding from initial categories to include health and wellness products, pet food, and apparel [5][6]. - The establishment of a cold chain warehouse has improved logistics efficiency, and the integration of AI and big data is enhancing supply chain management [6]. Market Challenges - The overall decline in the live e-commerce market and increased consumer scrutiny on product quality are impacting the company's performance [7]. - The departure of key figure Dong Yuhui has led to a significant drop in GMV and order volume on platforms like Douyin [7][8]. User Engagement and Platform Development - The number of paid subscribers on the Oriental Selection app reached 264,300, with a user satisfaction rate of 98.7% [8]. - The app's contribution to GMV increased from 8.4% to 15.7% year-on-year, indicating a shift towards building a proprietary platform [8]. Leadership and Future Outlook - The company is undergoing a transformation phase, focusing on maintaining GMV while developing its app ecosystem and expanding self-operated product categories [10][12]. - CEO Yu Minhong emphasized the importance of connecting upstream supply chains with downstream consumers to provide quality products [9].

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 stock price of Dongfang Zhenxuan has increased significantly, with a rise of over 200% since its lowest point in the year, reflecting a recovery after a substantial drop following the separation from Dong Yuhui [4][10]. Financial Performance - As of November 30, 2024, Dongfang Zhenxuan reported a revenue of 2.186 billion RMB, a year-on-year decrease of 21.8%, and transitioned from a profit of 160 million RMB to a net loss of 96.5 million RMB [9][10]. - The company’s earnings before tax showed a profit of 188.554 million RMB, while the net profit was reported at 141.414 million RMB after a 50% distribution to Dong Yuhui [6][10]. Stock Performance - On August 12, 2025, the stock price was reported at 31.100 HKD, with a market capitalization of 32.544 billion HKD. The stock has seen an increase of approximately 207.31% from its lowest price of 10.12 HKD this year and about 248.65% from the low of 8.92 HKD following the separation from Dong Yuhui [1][10]. Business Strategy - Dongfang Zhenxuan 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 [11][13]. - In 2024, self-operated products became the core revenue source for the company, accounting for 46% of total sales, indicating a shift towards a more stable profit model [13]. - The company aims to transform into a product technology company centered around self-operated products and a one-stop shopping platform primarily based on a membership system [13]. Product Development - In June 2024, Dongfang Zhenxuan entered the sanitary napkin market, selling 180,000 units within two days of launch, followed by the introduction of a second product [15]. - The company is diversifying its product offerings from agricultural products to household goods and snacks, reducing reliance on top influencers for growth [15].

Core Viewpoint - The article discusses the contrasting reputations of various brands in the sanitary napkin market, highlighting the trust crisis in the industry, particularly focusing on the controversies surrounding Xinba's brand "Mian Mima" and the successful market entries of other brands like Dongfang Zhenxuan and Duowei [2][4][23]. Group 1: Industry Overview - The sanitary napkin market in China is facing a trust crisis, exemplified by Xinba's "Mian Mima" brand being found to contain high levels of carcinogenic substances [3][10]. - The average price of sanitary napkins in 2023 is reported to be 0.9 yuan per piece, with a compound annual growth rate of 4.79% [16]. - The sanitary napkin industry has an average gross margin of 45%, but due to high marketing and channel costs, the net profit margin is only between 7% and 11% [24]. Group 2: Brand Performance - Xinba's "Mian Mima" brand reportedly achieved sales of 3.33 billion yuan over eight years and claims to have one million users [4]. - In contrast, Dongfang Zhenxuan's sanitary napkin launched in June sold 180,000 units within two days, generating an estimated sales revenue of 18 million yuan [7]. - Huang Zitao's Duowei brand sold 1.2 billion pieces within a month, with sales revenue around 80 million yuan [7]. Group 3: Product Quality and Safety - "Mian Mima" sanitary napkins were found to contain sulfur urea, a substance linked to thyroid issues, with one batch showing a sulfur urea content of 16,653.4679 μg/g [10][11]. - Despite the controversy, Xinba claims that their products are compliant with safety standards, presenting a testing report that shows no sulfur urea detected [13][15]. - Industry experts suggest that the presence of sulfur urea may be related to cost-cutting measures, as it is cheaper than other antioxidants [16]. Group 4: Market Dynamics and Strategy - The entry of entrepreneurs like Yu Minhong and Huang Zitao into the sanitary napkin market reflects a shift towards product-oriented strategies, moving away from the low-price competition exemplified by Xinba [9][40]. - Dongfang Zhenxuan emphasizes product quality, conducting extensive testing and optimizing product features to address safety concerns [38]. - Huang Zitao has invested 275 million yuan in acquiring factories and improving production lines, aiming for transparency in the manufacturing process [39].

Core Viewpoint - The sanitary napkin industry is facing a trust crisis, highlighted by the controversy surrounding Xinba's brand "Mian Mima," which has been found to contain high levels of carcinogenic substances, while other brands like those promoted by Yu Minhong and Huang Zitao are gaining popularity for their quality and marketing strategies [1][2][4]. Group 1: Industry Overview - The sanitary napkin market in China is significant, impacting the health of approximately 700 million women, and there is a strong demand for reform and quality assurance in the industry [25]. - The average gross margin in the sanitary napkin industry is reported to be around 45%, but due to high marketing and channel costs, the net profit margin is only between 7% and 11% [27]. - Recent sales data indicates that new entrants like Dongfang Zhenxuan and Huang Zitao's brands have achieved impressive sales figures, with Dongfang Zhenxuan's sanitary napkin sales reaching approximately 18 million units in just two days [5][26]. Group 2: Company-Specific Insights - Xinba's "Mian Mima" brand has generated sales of 3.33 billion yuan over eight years and claims to have 10 million users, but it is now under scrutiny due to health concerns [3][9]. - In contrast, Dongfang Zhenxuan has successfully leveraged its existing customer base and marketing strategies to enhance brand trust and sales, with a reported stock price increase of 53% since July [31]. - Huang Zitao has invested 275 million yuan into acquiring factories and innovating production lines for his brand, emphasizing transparency and quality in response to market demands [42]. Group 3: Product Quality and Safety Concerns - Reports indicate that multiple batches of "Mian Mima" sanitary napkins have been found to contain excessive levels of thiourea, a substance classified as a potential carcinogen [10][11]. - Despite the controversy, Xinba's representatives claim that their products are compliant with safety standards, presenting testing reports that show no thiourea presence in recent samples [13][14]. - Industry experts suggest that the presence of thiourea may be linked to cost-cutting measures, as it is cheaper than other antioxidants [19]. Group 4: Marketing and Consumer Trust - The recent sanitary napkin crisis reflects a broader consumer demand for product quality over low pricing, as seen in the contrasting strategies of Xinba and other emerging brands [4][44]. - Influencers like Yu Minhong and Huang Zitao are capitalizing on their reputations to build trust and drive sales, focusing on product quality rather than solely on price [7][43]. - The success of these brands in the sanitary napkin market illustrates a shift towards a product-centric approach, which is essential for long-term sustainability in the industry [51].

Investment Rating - The report maintains an optimistic outlook on the Hong Kong stock market, particularly regarding new IPOs and sectors such as stablecoins, new consumption, and innovative pharmaceuticals [3][10]. Core Insights - The report highlights new investment paths following the implementation of stablecoin legislation, emphasizing the positive sentiment towards Hong Kong and U.S. Chinese stocks, with a notable shift towards new concepts and small-cap stocks [3][10]. - There is a sustained bullish view on virtual assets, including stablecoins, with recommendations for traditional virtual asset companies and infrastructure assets related to blockchain technology [3][10]. - The report identifies potential risks associated with overseas Chinese assets, particularly concerning U.S.-China tariff issues, and suggests monitoring the progress of global tariff negotiations [3][10]. Industry Situation Tracking Education - The Chinese education index increased by 2.10% from July 14 to July 18, outperforming the CSI 300 and SSE 50 indices, while underperforming the Hang Seng Tech Index [11]. - Notable stock performances include a 25.09% increase for Fenbi and a 14.37% increase for Dongfang Zhenxuan, while New Oriental saw a decline of 3.39% [11][19]. Luxury Goods - The luxury goods sector faced slight pressure, with a 6% year-on-year decline in Burberry's sales revenue for Q1 of FY2026, although the decline was less severe than previous periods [25]. - The report notes that the jewelry segment remains a growth driver, with Richemont's jewelry sales increasing by 11% year-on-year [31]. Coffee and Tea Beverages - The coffee sector maintains high growth, while the tea beverage sector shows signs of recovery, benefiting from summer demand and delivery subsidies [5][28]. E-commerce - The e-commerce sector is experiencing slight pressure, with a slowdown in overall growth and intensified competition among platforms [5][34]. - The report highlights a 742.95 billion yuan online retail sales figure for the first half of 2025, reflecting an 8.5% year-on-year growth [37]. Streaming Platforms - The streaming media index rose by 7.8%, outperforming both the Hang Seng Index and the Hang Seng Tech Index [38]. - Notable stock performances include a 12.08% increase for NetEase Cloud Music and an 11.37% increase for Tencent Music [38]. Virtual Assets & Internet Brokers - The global cryptocurrency market capitalization reached $392.19 billion, with Bitcoin and Ethereum prices increasing by 0.4% and 19.9%, respectively [40][43]. - The report emphasizes the positive trend in virtual assets following the passage of the GENIUS Act in the U.S., which establishes a regulatory framework for stablecoins [49].

Group 1 - Dongfang Zhenxuan announced the launch of its first self-operated sanitary napkin, which will be available for sale on June 16, featuring a "pure cotton surface" aimed at safety and skin-friendliness [2][3] - The sanitary napkin's pH value is weakly acidic, and it has passed key tests such as skin sensitivity patch tests and formaldehyde-free tests, adhering to the GB 43631-2023 safety standards for infant products [3] - The first batch of sanitary napkins will include two specifications: 240mm and 290mm, with sales starting on the Dongfang Zhenxuan App and expanding to all official sales channels by June 18 [3] Group 2 - Many leading MCNs have entered the sanitary napkin market, with Huang Zitao's brand Duowei launching in May, claiming to have acquired a factory for transparent production rather than using a third-party manufacturer [4] - Duowei's sales performance has been strong, achieving over 40 million yuan in GMV during a live broadcast, with more than 5.4 million yuan in sales on the Douyin platform shortly after launch, surpassing established brands [4] - Other influencers, such as Xin Youzhi, have also established sanitary napkin brands, with significant sales figures reported, indicating a growing trend in the market [5]