From today onwards, the story will go in a completely different direction: Yu Minhong controls the direction of New Oriental and Oriental Selection, and Dong Yuhui is responsible for the fate of walking with Hui.
Image source: Visual China
Blue Whale News, July 25 (Reporter Qin Quan) A long breakup has come to that point......
On the evening of July 25, Oriental Selection issued three announcements in Hong Kong stocks: first, the friendly resignation of the Group's well-known anchor (Dong Yuhui), second, the specific transaction details of Oriental Selection's sale of its peers with Hui, and third, Oriental Selection said that it would repurchase the company's shares worth no more than 500 million yuan in the open market from time to time during the one-year period.
It can be summarized as, breaking up, how to break up, Dongfang selects to buy back to stabilize its stock price.
The details of the breakup still caused surprise in the industry. The announcement pointed out that Dong Yuhui (the buyer), Beijing New Oriental Xuncheng Network Technology Co., Ltd. (the seller) and Hui Tong (Beijing) Technology Co., Ltd. (the target company) entered into a sale agreement, according to which the seller agreed to sell, and the buyer agreed to acquire 100% of the equity of the target company at a consideration of RMB 76.5855 million.
After the announcement, Yu Minhong released an open letter to Dongfang Selection Shareholders and Friends on his personal public account, one of which said, "Yuhui holds the equity purchase money required for Hui's peers, and I will also arrange to pay it in a manner that complies with the rules of the listed company and the company's articles of association", and then Yu Minhong said in the message, "This sentence means that I arranged the money for Yuhui to buy the company, and the company gave it to Yuhui."
Dong Yuhui has since become the real boss who walks with Hui. Not only did Dong Yuhui and Yu Minhong completely break up, but "Oriental Selection" and "Walking with Hui" have no equity level since then, and the two top live broadcast rooms will be direct competitors in the future.
The market has long been psychologically prepared for the "breakup" of the two parties, but it is still surprised by such a decisive "divorce". Will Yuhui's peers go public after independence? In the future, where is the path of Yuhui peers and Dongfang Selection?
Yu Minhong: "(Walking with Hui) the company is given to Yuhui"
After issuing three announcements in a row, Yu Minhong also issued an "Open Letter to Dongfang Selection's Shareholders and Friends" to comprehensively explain the reasons and processes of Dongfang Selection and the breakup with Hui peers.
The letter contains a lot of content that has not been made public before. It mentioned that after the establishment of a subsidiary with Hui peers, the interests of the two parties were arranged, "after discussion and approval by the board of directors of Oriental Selection, no matter how the company operates with Hui peers, Yuhui will be given an attractive guaranteed income (cash + equity) to show the affirmation of Yuhui's value." In order to ensure that Yuhui can design his future with Hui according to his own wishes, and to respect his interest in knowledge and cultural dissemination, the board and I have no requirements for the benefits of walking with Hui, and he can focus on recommending books, interviewing writers, and promoting cultural tourism. At the same time, I promise that in addition to getting all the guaranteed income, if there is income with Hui, Yuhui can continue to get half of the company's net profit."
At the end of 2023, when Dong Yuhui and Dongfang Xiaosun were directly involved, a general sentiment in the industry was that Dong Yuhui was the soul of Dong Yuhui but did not get the salary that matched it, and a comparison was that Li Jiaqi had already become partners after leading the growth of Mei ONE, and Simba, Wei Ya, and Brother Yang were the founders of their respective companies.
Yu Minhong mentioned in the article, "At the same time, I promise that in addition to getting all the guaranteed income, if there is income with Hui, Yuhui can continue to get half of the company's net profit." In comparison, even after becoming a subsidiary, Dong Yuhui's income in the live broadcast room with Hui is less than that of Li Jiaqi, Simba, Wei Ya and others.
In a further explanation issued by Yu Minhong on Weibo tonight, he said, "All the benefits obtained by Walk with Hui since its establishment, including all profits, Oriental Selection has not taken a penny, and all of them have been left to Yuhui and Walk with Hui to support their continued development."
Talking about why he decided to be 100% independent with Hui, Yu Minhong believes that it is mainly due to the increasingly bad public opinion environment of Dongfang Selection, "but the complex public opinion disputes, coupled with the guidance and rumors of a few forces with ulterior motives, directly lead to the estrangement between Dongfang Selection and Hui's peers."
"This public opinion environment has led to huge uncertainty in the development of companies on both sides, stock prices fluctuate violently due to external influences, and the company's credibility and reputation have declined sharply." Yu Minhong said that based on this, he had met and communicated with Yuhui many times in March this year, "After repeated consultations, the two of us finally decided that after the end of the fiscal year (May 31), I went to ask the board of directors to agree to transfer 100% of the shares of Huihui to Yuhui himself."
The result of today's breakup is that after the transaction is completed, he has walked with Hui and has no connection with Dongfang Selection since then, and it is a complete breakup.
Judging from the decisive breakup action and open letter, Yu Minhong is indeed fed up with the criticism of Dongfang Selection and his personal criticism in the public opinion field, and a complete breakup may reduce the concentration of public opinion attacks in the future. As Dong Yuhui's Bole, on the occasion of the final breakup, he practiced his last generosity as Bole by means of giving it away for nothing, and let Dong Yuhui fly solo in the real sense.
Each goes its own way, and "Oriental Selection" and "Walking with Hui" become competitors
Affected by the resignation of anchor Dong Yuhui, New Oriental's U.S. stocks plummeted before the market, falling more than 6%. In order to stabilize the market value of Oriental Selection, it also proposed a repurchase plan, and Oriental Selection said that it would repurchase the company's shares worth no more than 500 million yuan in the open market from time to time during a year.
Judging from the actions of the capital market, the breakup incident is unfavorable to Dongfang Selection. But perhaps, as Yu Minhong is concerned, an incomplete breakup will lead to all the bad influences that will not only affect Dongfang Selection, but also restrict the development of his peers with Hui, and from then on, he can develop completely freely with Hui and move forward according to the route set by the intellectual anchor Dong Yuhui.
In fact, since it was set up as a subsidiary of Dongfang Selection, its development momentum has already surpassed the latter. According to the public data released by Cicada Mother, on the list of 6·18 major promotions of Douyin talents, He Hui ranked third; Oriental Selection only ranked 11th.
Another big move with Hui recently, the live broadcast room with Hui ushered in a conversation between Yu Chengdong, executive director of Huawei and chairman of the intelligent car solution BU, and Dong Yuhui, according to relevant data, the sales of Huawei products in the live broadcast room exceeded 100 million yuan during the conversation between the two.
Ideally, after being 100% independent, he will be more free to live broadcast according to Dong Yuhui's preferred route in the future: traveling in the mountains and rivers, recommending writers and new books, and talking with celebrities. Dong Yuhui has revealed in the live broadcast room more than once that he doesn't like to sell goods. In fact, completing the conversion of selling goods in dialogue and knowledge sharing is also Dong Yuhui's starting path.
After separation, Peer with Hui and Dongfang Selection inevitably became peer competitors.
The pressure was given to Dongfang Selection. Previously, Blue Whale News wrote "The Live Story of Oriental Selection is Becoming More and More Difficult to Tell", which mentioned that the ideal business of Oriental Selection is to build itself into a retail company with its own supply chain based on the traffic live broadcast room.
On June 19, Oriental Selection released relevant self-operated results: In the second half of the fiscal year 2024 (December 2023 to May 2024), the GMV of Dongfang Selection's self-operated products exceeded 3.6 billion yuan, a year-on-year increase of 108% and a month-on-month increase of 74%.
However, for now, the heavy investment in self-operated products will reduce the gross profit margin, increase the performance risk, and affect the valuation of Dongfang Selection in the capital market. Dongfang Selection has not yet reached the stage of establishing scale advantages, so it is still in the investment period.
Yu Minhong encouraged the two live broadcast rooms at the same time in the open letter, saying, "I believe that after experiencing various turbulent waves and uncertainties in the past, Dongfang Selection and Walking with Hui will definitely embark on the road of stable development respectively, and make our due efforts and contributions to the prosperity of the motherland, knowledge dissemination and cultural promotion."
This is naturally a beautiful expectation and vision. But from today onwards, the direction of the story has become different: Yu Minhong masters the direction of New Oriental and Oriental Selection, and Dong Yuhui is responsible for the fate of walking with Hui.
#董宇辉离职, a huge breakup