Author|Sisyphus
The story of wealth creation in the field of live streaming e-commerce continues.
Recently, New Oriental Online submitted documents to the Hong Kong Stock Exchange show that Sun Dongxu, CEO of New Oriental Online, reduced his shareholding ratio from 1.57% to 1.18% on February 7 and February 8, respectively, cashing out a total of HK $217 million.
At the same time, Yin Qiang, the company's CFO, also reduced his holdings and cashed out HK $61.59 million.
May be a lack of experience in market value management, the two executives of New Oriental Online accumulated nearly 300 million Hong Kong dollars to cash out, before no warning, the sudden reduction of holdings, once caused New Oriental Online's stock price to fall by 20%.
When the news is transmitted from the capital market to the live streaming e-commerce industry, it brings a lot of discussion. The CEO reduced his holdings by less than 0.5% and cashed out more than 200 million Hong Kong dollars, compared with the "top card" Dong Yuhui in the Oriental Selection live broadcast room, what is the income?
Previously, there were industry rumors that Dong Yuhui's annual salary was around 20 million yuan. However, after Chop Pepper TMT asked Dong Yuhui for verification, he said that this data was inaccurate.
In fact, as an "old man" who has adhered to New Oriental for 15 years, Sun Dongxu accompanied the company through the trough of "double reduction", and helped Yu Minhong to help Oriental selection up, and cash out at today's time node, which is understandable.
Think about once, in December 2020 and November 2021, when the stock price of New Oriental Online was low, Sun Dongxu also took out nearly 60 million Hong Kong dollars and increased his holdings twice.
Some shareholders are worried that with the gradual "de-Dong Yuhui" of Oriental Selection, and some rumors of Dong Yuhui flying solo, it will affect the operation and even the stock price of New Oriental Online. Some shareholders even suggested that New Oriental Online launch an equity incentive plan as soon as possible to include core backbones such as Dong Yuhui.
Regarding the reduction, New Oriental Online said that it had noted the relevant discussions, and it was normal for the company's executives to sell a small number of shares during the effective exercise period.
At the end of December 2022, Xie Rudong, chairman of Yaowang Technology, another leading company in the live streaming e-commerce industry, also reduced his holdings and cashed out 267 million yuan.
According to the announcement at the time, Xie Rudong reduced his holdings of 18.2 million shares of the company on December 27 at an average price of 14.68 yuan per share due to the need to repay his own debts and industrial investment, accounting for 1.997% of the company's total share capital, involving about 267 million yuan. After the completion of the reduction, the proportion of shares held by Xie Rudong in the total share capital decreased from 9.518% to 7.521%.
With the landing of various leading live streaming e-commerce companies in the capital market, the "wealth creation" effect has gradually appeared.
In addition, Make a Friend, founded by Luo Yonghao, is "in-depth cooperation" with Hong Kong listed company Century Ruike, Simba's Xinxuan and A-share listed company Shengxunda have deepened cooperation at the capital level, and Xin Youzhi, Chu Ruixue and other core people of the company also hold the equity of Shengxunda. Capital is having an increasing impact on the live streaming e-commerce industry.
Sun Dongxu: 16 years with New Oriental, an important "driver" of transforming live streaming e-commerce
In June 2022, when Dong Yuhui had just become popular, in the New Oriental office in Zhongguancun, chopped pepper TMT had a relationship with Sun Dongxu. He is about 1.85 meters tall, very thin, and chats very directly.
"Traffic procurement could not bring core competitiveness to Oriental Selection at that time, and our strategic focus was on products and brands. If you do casting, you will not be able to see the real feedback of users. He once answered the question of buying traffic in the live broadcast room.
From June last year to January this year, New Oriental Online's stock price rose all the way, from the lowest HK$3 per share to the highest point of more than HK$75 per share, becoming a veritable "big bull stock".
However, due to rumors of Dong Yuhui's solo flight in the market, the stock price ushered in a high adjustment. Subsequently, Dong Yuhui appeared in the live broadcast room of "Oriental Selection to See the World", which restored the confidence of many investors, the stock price rebounded, and the trading volume increased greatly.
Against this backdrop, the drop in plans is not surprising.
Over the years, Sun Dongxu's performance and perseverance have been obvious to all.
In 2007, Sun Dongxu received a bachelor's degree in engineering from Nankai University, majoring in computer science and technology, and joined New Oriental after graduating from university, successively serving as a teacher of the foreign examination department of Tianjin New Oriental School, assistant principal of Hefei New Oriental School, and principal of Xi'an New Oriental School.
In 2018, when Yu Minhong was transferred from Xi'an to Beijing as CEO of New Oriental Online, he was just 32 years old. In Yu Minhong's evaluation, this young man dares to fight.
What Sun Dongxu often said to Yu Minhong was that he would either fight himself to the best or fight himself until he was fired by his boss in the end.
In order to make up for the sluggishness and deficiencies in the field of science and technology, in 2018, Yu Minhong adjusted the overall management of New Oriental, reusing and promoting Sun Dongxu, who has a science and engineering background.
He has been the CEO of New Oriental Online for his third year. Sun Dongxu experienced the IPO of New Oriental Online, the outbreak and sudden changes in the online education and training industry, and started his business again, and everything was completed in two years of ups and downs.
In addition to increasing his holdings twice when the company's stock price was down, Sun Dongxu gave strong support to the employees and anchors in the days when New Oriental Online first started live broadcasting.
He once shared in the circle of friends that Dong Yuhui and Shi Ming rubbed his car home just after the live broadcast room, and in order to encourage them, he specially played the song "Unstoppable" loudly in the car.
I have to say that Sun Dongxu is a person who engraves New Oriental values in his bones, and is also the biggest "driver" behind New Oriental's online transformation of live streaming e-commerce.
Paving the way for New Oriental Online equity incentives?
Recently, looking at technology and making friends, three domestic e-commerce listed companies of New Oriental Online have successively released 2022 performance forecasts.
Chop Pepper TMT found that the largest GMV is the technology of Yaowang, with an annual GMV of 15 billion, but a net profit of only 270 million. In contrast, Oriental Selection, which has an annual GMV of only 4.82 billion yuan, has a net profit of 585 million, making it the most profitable live streaming e-commerce listed company.
In the previous article of Chop Pepper TMT, it was analyzed that the reason why Oriental Selection made money was because the live broadcast room did not buy traffic on a large scale, and the company vigorously developed self-operated products, and the profit margin was relatively high. More importantly, Oriental Selection has caught up with the dividend express of Douyin's "content-based live broadcast", and the anchors are basically employees, only receiving salaries and not participating in the share.
Even Dong Yuhui, the great meritorious minister of the Oriental selection live broadcast room, only received salary as an employee of New Oriental after becoming popular. After the company's stock price rose sharply, Dong Yuhui once said in the live broadcast room that everyone should not look at the stock price, no matter what concerns him.
However, Dong Yuhui is a person who can affect the flow of Oriental selection, revenue, and even the stock price of the entire company, and even become the "idol" of many young people.
How hot is he?
There are about 20 programs at this year's CCTV Network Spring Festival Gala, but almost every program has a barrage under it, "I came for Dong Yuhui" and "When will Dong Yuhui appear"... Near Dong Yuhui's "Five Seconds" program, even if there are other actors performing on stage, the name of Dong Yuhui is all brushed in the barrage, which shows the high popularity.
Perhaps in order to retain Dong Yuhui, or perhaps because of the incentive mechanism of New Oriental, Yu Minhong gave Dong Yuhui verbal praise and gratitude more than once, and bluntly said in the live broadcast room that he had awarded Dong Yuhui the "Chairman's Special Award", and also gave Dong Yuhui "a share" of equity to New Oriental.
Some people ridiculed on the Internet, "Look at Dong Yuhui, he is very dangerous." But at the beginning of this year, a series of rumors appeared, and even rumors of "Dong Yuhui flying solo" came out.
Some insiders analyzed that the reduction of Sun Dongxu and Yin Qiang this time does not rule out that it is the prelude to Yu Minhong's internal reform and employee incentives. Although Dong Yuhui has no intention of leaving now, after all, "he does not suffer from the few but suffers from inequality."
Who will be the next "live streaming e-commerce boss" to reduce holdings?
In fact, it is already strange that the executives of live streaming e-commerce listed companies have reduced their holdings.
Take another listed e-commerce company, Yaowang Technology, as an example. The company, formerly known as Saturday, operates a women's shoe business, and after completing the acquisition of the live streaming e-commerce company Yaowang Network, the company's actual controllers, Zhang Zemin, and his wife began to reduce their holdings to cash out. FROM 2020 TO 2021, THE TWO HAVE REPEATEDLY REDUCED THEIR HOLDINGS THROUGH YUNNAN ZHAOLONG, LYONE GROUP AND OTHER INSTITUTIONS, WITH A CASH AMOUNT OF MORE THAN 1 BILLION.
In April 2022, Xie Rudong, founder of Yaowang Network, became the chairman, general manager and legal representative of the listed company. According to the third quarterly report, Xie Rudong, the founder of Yaowang Network, became the company's largest single major shareholder with 9.52% of the equity.
Subsequently, at the end of December 2022, Yaowang Technology announced that Chairman Xie Rudong reduced his holdings of 18.2 million shares of the company at an average price of 14.68 yuan per share on December 27 due to the need to repay his own debts and industrial investment, accounting for 1.997% of the company's total share capital, involving about 267 million yuan.
After the completion of the reduction, the proportion of shares held by Xie Rudong in the total share capital decreased from 9.518% to 7.521%.
Since the Spring Festival this year, the stock price of Yaowang Technology has soared due to many rumors such as cooperation with the Spring Festival Gala. Recently, it has caught the wind of ChatGPT. On the morning of the 14th, Yaowang Technology said on the interactive platform that the company plans to generate AIGC for live streaming based on the GPT technology framework, which is only in the research stage, and whether it can be stably commercialized in the future is still inconclusive.
At present, among the three listed e-commerce companies, New Oriental Online is the largest in terms of market capitalization, with a market value of HK$51.4 billion, followed by Yaowang Technology with a market value of RMB13.5 billion.
This means that according to Sun Dongxu's current shareholding ratio of 1.18%, there is still room for reducing his holdings by about HK$600 million; The value of Xie Rudong, chairman of Yaowang Technology, in the company is also more than 1 billion yuan.
In addition, Xin Youzhi, a leading anchor in the field of Kuaishou live streaming e-commerce, also started cooperation with Shengxunda, an A-share listed company.
In September 2020, Shengxunda transferred 49% of the equity of its subsidiary Shengxun Cloud Merchants to Guangdong Xinxuan Holdings Co., Ltd. (an enterprise controlled by Xin Youzhi), and Shengxunda still holds 51% of Shengxun Cloud Merchants.
Since then, Shengxunda has implemented equity incentive plans for a series of Xinxuan's executives.
According to Shengxunda's financial report for the third quarter of 2022, Xin Youzhi and Chu Ruixue each hold 0.92% of the equity of the listed company. Xin Youzhi's other family members, including Xin Youzhi's father Xin Ku, Xin Youzhi's cousin Ji Mengyao, and Ji Mengyao's spouse Liu Peng, hold 0.87%, 0.87% and 0.83% respectively.
Last year, Make a Friend not only reached a 5 billion framework cooperation with Century Ruike, a Hong Kong listed company, but also signed a five-year exclusive work letter agreement. During the cooperation period, Century Ridge will continue to operate all Douyin accounts owned by Friends exclusively, and all the income generated by the account will also belong to Century Ridge.
It is equivalent to making a friend and going public in disguise, and Huang He, the CEO of making a friend, holds 68% of the company's equity and 68% of the company's equity, and it is worth looking forward to whether he will hold shares at the listed company level in the future capital operation.
With the in-depth development of the live streaming e-commerce industry, more capital operations may begin one after another.