Dongfang selection completed the "Dong Yuhui" Yu Minhong said that the spin-off is good for the company's development

Author | "Caijing" new media writer: Wang Jingya, Chen Chen/text editor| Shu Zhijuan

Although Dongfang Xuan and Dong Yuhui ended their business relationship in a friendly and harmonious manner, this major personnel change caused various conjectures and had a knock-on effect in the capital market. On July 26, Oriental Selection (01797. HK) shares fell 23.39% to close at HK$9.500 per share.

In response to doubts, Yu Minhong, chairman and CEO of Oriental Selection, responded to the beginning and end of the independent incident with Hui and the future development direction of Oriental Selection at the shareholder communication meeting. He said that the divestiture with Hui is inevitable under the reality that the company is facing, and this result is good for the development of Dongfang Selection. In the future, there will be no more independent anchors in Dongfang Selection. At the same time, he also said, "If you think that I am not qualified to be CEO and chairman, you can choose a new chairman and CEO." ”

In view of the development direction of Oriental Selection, Yu Minhong made it clear that in terms of form, Oriental Selection still emphasizes content and culture, and promotes high-quality products with valuable emotional output; In terms of products, both self-operated and external commodities are taken into account; In terms of traffic, in addition to large accounts, it is also necessary to build an account matrix that is biased towards vertical platforms to attract special groups; In terms of promotion, Dongfang selects or enters offline stores to open up online and offline channels.

New Oriental will not participate in the development of Hui in the future

Since the "Little Composition" incident last year, Dong Yuhui, Yu Minhong, and even Dongfang Selection and the anchors who are with Hui have become the focus of attention from the outside world. On July 25, Dongfang Selection issued an announcement disclosing Dong Yuhui's resignation and independence from Hui, and once the news was issued, the instantaneous public opinion storm reached its peak. Speculation is rife.

On the afternoon of July 26, at the shareholders' communication meeting, Yu Minhong responded to the beginning and end of the divestiture with Hui from its inception. He said that after the establishment of Oriental Selection, the development direction of selling agricultural products, explaining culture, and promoting knowledge was determined under his proposition, and then Dong Yuhui led the Oriental Selection. Due to something that happened in the middle, it led to a "small composition" storm at the end of 2023. After that, Yu Minhong personally assumed the position of CEO and gave Dong Yuhui a guaranteed income. In order to avoid contradictions and conflicts between the two sides, he established a walk with Hui at his suggestion.

Talking about the relationship between the two platforms, Yu Minhong said that the initial assumption was that the two platforms would give full play to their respective advantages and not interfere with each other, and the middle and Taiwan would provide support for both sides. However, due to the interference of the external environment and internal conflicts, I stumbled. "Since the Dongfang selection became popular, there have been people fanning the flames, jealousy of our success, capital background manipulation, etc., which are all speculations and have no basis." Yu Minhong said.

In response to various public opinions, Yu Minhong said that he tried to adjust, maintain the relationship between the two sides, and tried his best to curry favor, but he didn't expect that this bowl of water was not leveled, and the fire burned on himself. "It seems that I have become the most vicious capitalist and vicious boss in the world, of course I don't care about these comments, but the impact on the company's business, especially the managers and anchors of Dongfang Selection and my mentality have been affected and hurt."

On the company's side, due to the online explosion, the mentality of the anchor has been affected, leading to mistakes, and new cyber attacks have been triggered, which has aggravated the damage, which has brought uncertainty to the company. "The two sides of itself add up to higher than the original, but the stock price is going down, in a dilemma, and a series of layouts can't be carried out, because as long as I have a move, it will cause an Internet explosion." Yu Minhong said.

Yu Minhong revealed that at the end of February and early March this year, he and Dong Yuhui discussed the independence of walking with Hui. The internal fight is irreconcilable, and the outside is coerced by the inside, and Dong Yuhui also hopes for development space. Although Dong Yuhui is the company's core asset and outstanding person, he still decided to start independence from Hui at the end of the fiscal year.

At the same time, Yu Minhong responded to the question of the income of the company with Hui and the specific distribution of the money. He said that according to the original agreement, the company and Dong Yuhui each accounted for 50% of the profits of Hui peers, and now there is a net profit of 140 million yuan on the accounts of Hui peers, which is the amount after excluding Dong Yuhui's personal distribution. In addition, Dong Yuhui also has a monthly salary and equity granted to him by the company.

As for the 76.5855 million yuan given to Dong Yuhui, it has nothing to do with the 140 million yuan on the books. Yu Minhong said: "76.5855 million yuan is a kindness given to Dong Yuhui as a big brother. "So it was decided to help Hui pay through some kind of cooperation between New Oriental and Hui, which did not encroach on the interests of Dongfang Selection and Dong Yuhui.

He said: "I have no estrangement with Dong Yuhui, there is no way to break up this time, the world is not the world of the two of us, all aspects must be taken into account, I personally will not participate in any capital operation and development with Hui at any time in the future." At the same time, in response to rumors that after independence from Hui peers, Yu Minhong or New Oriental or participated in the operation, Yu Minhong denied it.

or enter offline channels

In addition to explaining the beginning and end of the separation incident with Hui peers, Yu Minhong also revealed the development direction of Dongfang Selection at the shareholder communication meeting. In his view, this spin-off has great benefits for the development of Dongfang Selection, which means that Dongfang Selection will develop in a peaceful environment.

The development of Dongfang Selection originally came from the traffic economy, and to this day, one pillar is still traffic, relying on live broadcasts and anchor introductions to attract fans and increase revenue.

On the one hand, after this series of events, the existing anchors are becoming more and more mature, and in the future, the anchors will be arranged to show their abilities. On the other hand, negative control is already on the agenda, "the future cannot be 100% error-free, but we should be tolerant enough to deal with these things." In addition, Dongfang Selection is actively participating in Douyin cooperation and negotiations, and will cooperate more closely with Douyin in the future and get better support.

Yu Minhong said that in addition to traffic, another pillar is the product. "Advertising traffic alone is very volatile, and the company with the product is the real company." He said. Dongfang selected the first product to appear, requiring the team to work hard to develop its own products. At present, Yu Minhong, his family, and the staff of Dongfang Selection almost use the products of Dongfang Selection, and the ideal of products in the future is even fuller than that of the benchmark Sam's Club. In the future, Dongfang will show more and more brand degrees, develop more self-operated products according to the economic situation and consumption situation, and introduce world-class international products, and at the same time develop local characteristic products, especially in border areas and areas in need of help.

In addition to the above two points, Yu Minhong also said that it is necessary to stabilize the foundation. He said: "It's nice to only work with Douyin, but it's really not a very stable architecture, so in 2022, I have already ordered to develop my own platform." Although the self-built house is not large, it also has more than 200,000 members and millions of downloads. It's a lot of sales in a month. In the future, Oriental Selection also hopes to rely on New Oriental's ground teaching points to explore online and offline cooperation models and open ground stores.

It is worth noting that a series of events triggered by the "small composition" have had a huge impact on Dongfang Selection. Yu Minhong said bluntly, "The company should not have private forces, and in the future, it will give the anchors good enough treatment, hoping to build the anchors into unity, and it is impossible for an anchor to set up a platform independently." ”