Core Viewpoint - The departure of former CEO Sun Dongxu marks a significant turning point for Dongfang Zhenxuan, which has not yet recovered from the turmoil caused by internal conflicts and leadership changes [1][4][10]. Group 1: Leadership Changes - Sun Dongxu's resignation was confirmed by New Oriental's founder, Yu Minhong, who expressed emotional support for Sun's decision to leave [1]. - Sun Dongxu had been a long-time employee of New Oriental, rising through various positions before becoming CEO of Dongfang Zhenxuan [3]. - Following Sun's departure, Dongfang Zhenxuan's stock price dropped by 9%, resulting in a market value loss of approximately 3 billion HKD in one day [3]. Group 2: Company Performance - Dongfang Zhenxuan's market value has decreased significantly from a peak of 74 billion HKD in January 2023 to 22.6 billion HKD by November 7, 2023, losing over 50 billion HKD [3]. - The company reported a 32.7% year-on-year decline in total revenue and a staggering 97.5% drop in net profit for the fiscal year 2025 [12]. - The loss of key talent, particularly the departure of popular host Dong Yuhui, has been cited as a major factor in the decline of Dongfang Zhenxuan's purchasing power [12]. Group 3: Internal Conflicts - Tensions between Sun Dongxu and Dong Yuhui escalated, leading to public disputes and ultimately contributing to Sun's removal as CEO [6][8]. - The internal strife was exacerbated by public comments and actions that angered fans, resulting in a significant drop in followers and stock value [7][8]. - Yu Minhong attempted to mediate the situation by promoting Dong Yuhui to a higher position while allowing Sun to remain as an advisor, but this strategy proved ineffective in the long term [9]. Group 4: Strategic Shifts - Dongfang Zhenxuan has been working to diversify its operations beyond reliance on key hosts, launching multiple product categories and implementing a rotating host system [12]. - The company has introduced a membership program and increased its self-operated product offerings, with total revenue from self-operated products rising to 3.5 billion CNY [13]. - Despite these efforts, the company faces challenges in achieving sustainable growth, as evidenced by a slowdown in new paid membership subscriptions [14].