Core Viewpoint - The stock price of Dongfang Zhenxuan has surged significantly, increasing by 357% since the departure of its star host Dong Yuhui, with a market capitalization exceeding 43 billion HKD as of August 15 [1][5][20]. Stock Performance - As of August 15, Dongfang Zhenxuan's stock rose by 17.9%, with a total market value surpassing 43 billion HKD [1]. - Since July 2023, the stock has seen a cumulative increase of nearly 248%, and from the low point of 8.92 HKD per share after Dong Yuhui's departure, the increase is as high as 357% [1][5]. Recent Market Trends - The stock had been underperforming in the first half of the year, leading to multiple institutions reducing or liquidating their holdings [3][14]. - The recent surge in stock price is closely tied to market expectations of a recovery in performance, with the next quarterly financial report set to be disclosed on August 22 [7][20]. Financial Performance - According to a report from Huaxi Securities, Dongfang Zhenxuan's revenue for the fourth quarter of the 2025 fiscal year is projected to be approximately 150 million USD, reflecting a year-on-year decline of about 30%, although the decline is narrowing compared to previous quarters [7]. - The non-GAAP operating profit is estimated at around 79 million RMB, with an operating profit margin of approximately 7%, showing a quarter-on-quarter improvement [7]. Business Strategy - Following the departure of key hosts, Dongfang Zhenxuan is shifting its business strategy to reduce reliance on individual hosts, focusing on self-operated products and a membership system as key drivers of its new business model [8][12]. - The company has launched a variety of self-operated products, achieving significant sales, including over 3.6 million units of coconut water sold in a single day and cumulative sales of over 2.6 billion grilled sausages [9][11]. Membership Growth - Dongfang Zhenxuan introduced a paid membership system in October 2023, with an annual fee of 199 RMB, which has seen the number of paid subscribers reach 228,000, nearly doubling year-on-year [13]. - The repurchase rate of members is significantly higher than that of non-members, at 2.7 times greater [13]. Institutional Holdings - There has been a notable reduction in institutional holdings, with a 40.19% decrease in the number of shares held by public funds by the end of the first quarter of 2023 [14][18]. - By June 30, 2023, the total number of shares held by public funds had decreased by 88.62% compared to the previous quarter [16][18]. Future Outlook - Analysts express optimism about Dongfang Zhenxuan's recovery, citing its transition from a host-driven model to a product-driven approach as a positive development [19]. - The market is awaiting the upcoming financial report to assess whether the company can deliver satisfactory results amid its recent stock price surge [20].

Core Viewpoint - After more than a year since the departure of Dong Yuhui, the stock price of Dongfang Zhenxuan has seemingly emerged from a low period, with significant increases observed in recent months [1][3]. Stock Performance - As of August 15, Dongfang Zhenxuan's stock price surged by 17.9%, with a total market capitalization exceeding 43 billion HKD. Since July, the stock has accumulated a rise of nearly 248%, and from the low point of 8.92 HKD per share after Dong Yuhui's exit, the increase has reached 357% [3][4]. - The stock's recent performance is closely tied to market expectations of a recovery in its financial performance, with the upcoming quarterly report set to be disclosed on August 22 [6]. Financial Performance - The performance report from New Oriental for the period from March to May 2025 indicates an estimated revenue of approximately 150 million USD for the fourth quarter, reflecting a year-on-year decline of about 30%, although the decline is narrowing compared to previous quarters. The non-GAAP operating profit is estimated at around 79 million RMB, corresponding to an operating profit margin of about 7%, showing a quarter-on-quarter improvement [6][14]. - In the first half of 2025, Dongfang Zhenxuan's self-operated product gross margin improved significantly from 10% in the second half of 2024 to 21% in the first half of 2025, with operating profit margin rising from 3% to 7% [14]. Business Strategy - Following the departure of key hosts, Dongfang Zhenxuan has shifted its business strategy to reduce reliance on individual hosts, focusing on self-operated products and a membership system as the two main drivers of its new business model [9]. - The company has launched a variety of self-operated products, achieving impressive sales figures, such as over 36,000 units of coconut water sold in a single day and cumulative sales of over 2.6 billion self-operated sausages [9][13]. Membership Growth - Dongfang Zhenxuan introduced a paid membership system in October 2023, becoming the first live-streaming platform to implement such a model. As of the mid-2025 financial report, the number of paid members reached 228,000, nearly doubling year-on-year, with member repurchase rates significantly higher than non-members [14]. Institutional Investment Trends - Throughout 2023, institutional investors have been cautious, with a notable reduction in holdings. By the end of the first quarter, the total number of shares held by mainland public funds decreased by 40.19%, with significant reductions from major funds [16][20]. - The mid-2025 financial report revealed a net loss of approximately 96.5 million RMB for the core business, a stark contrast to a profit of 160 million RMB in the same period the previous year, which may have contributed to the cautious stance of institutional investors [20][21]. Market Outlook - Analysts from various securities firms have expressed optimism regarding Dongfang Zhenxuan's recovery, highlighting the company's transition from a host-driven model to a product-driven approach as a key factor for future growth [21][22].

Core Viewpoint - After more than a year since the departure of Dong Yuhui, the stock price of Dongfang Zhenxuan has seemingly emerged from a low period, with significant increases observed recently [1][2]. Stock Performance - As of August 15, Dongfang Zhenxuan's stock surged by 17.9%, with a total market capitalization exceeding 43 billion HKD. Since July, the stock has accumulated a rise of nearly 248%, and from the low point of 8.92 HKD per share after Dong Yuhui's exit, the total increase has reached 357% [3][5][7]. Recent Market Trends - The recent surge in stock price is closely related to market expectations of performance recovery, with the upcoming quarterly financial report set to be disclosed on August 22. The performance report from New Oriental indicated a projected revenue of approximately 150 million USD for the fourth quarter of the 2025 fiscal year, reflecting a year-on-year decline of about 30%, but with a narrowing decline compared to the previous quarter [9]. Business Strategy Shift - Following the departure of key hosts like Dong Yuhui, Dongfang Zhenxuan has shifted its business strategy to reduce reliance on individual hosts. The new business model focuses on "self-operated products" and a "membership system" [11]. - The company has successfully launched self-operated products, with notable sales figures such as over 3.6 million units of coconut water sold in a single day and cumulative sales of over 2.6 billion units of self-operated sausages [13]. Membership Growth - Dongfang Zhenxuan introduced a paid membership system in October 2023, becoming the first live-streaming organization to do so. As of the mid-2025 fiscal year, the number of paid members reached 228,000, nearly doubling year-on-year. The repurchase rate of members is significantly higher than that of non-members, at 2.7 times [13][14]. Institutional Investment Trends - Throughout 2023, institutional investors have frequently reduced their holdings in Dongfang Zhenxuan. By the end of the first quarter, the total number of shares held by public funds had decreased by 40.19%, with significant reductions noted in major funds [15][18][21]. Financial Performance - The mid-2025 fiscal year report indicated a net loss of approximately 96.5 million CNY for the core business, a stark contrast to a profit of 160 million CNY in the same period the previous year. This marked the company's first performance report following the departure of Dong Yuhui [21]. Market Outlook - Analysts express optimism regarding Dongfang Zhenxuan's recovery, citing the company's evolving business model and the successful development of self-operated products as key factors for future growth. The market is currently awaiting the upcoming financial report to assess the company's performance [22].